Published on 3/11/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.21 million contingent income autocallables tied to two indexes
By Jennifer Chiou
New York, March 11 - Morgan Stanley priced $3,213,000 of contingent income autocallable securities due March 13, 2017 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 2.1875% if each index closes at or above its 80% coupon barrier level on a quarterly determination date.
The notes will be redeemed at par plus the contingent coupon if each index closes at or above its respective initial level on any quarterly determination date.
The payout at maturity will be par plus the final contingent coupon, unless any index finishes below its 80% downside threshold level, in which case investors will be fully exposed to the decline of the worst-performing index.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management will handle distribution.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $3,213,000
|
| Maturity: | March 13, 2017
|
| Coupon: | 2.1875% per quarter (8.75% annualized) that each index closes at or above its barrier level on the determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above its 80% downside threshold level, par plus the final contingent coupon; otherwise, full exposure to losses of worst-performing index
|
| Call: | At par plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date other than final date
|
| Initial index levels: | 1,203.316 for Russell, 3,095.31 for Euro Stoxx
|
| Barrier/downside threshold level: 962.653 for Russell, 2,476.248 for Euro Stoxx; 80% of initial levels
|
| Pricing date: | March 7
|
| Settlement date: | March 12
|
| Agent: | J Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 2.25%
|
| Cusip: | 61761JPR4
|
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