By Toni Weeks
San Luis Obispo, Calif., May 14 - Morgan Stanley priced $1.17 million of trigger phoenix autocallable optimization securities due Nov. 17, 2014 linked to Goldcorp Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11.8% if the price of Goldcorp stock closes at or above the 70% trigger price on the observation date for that quarter.
If the stock closes at or above the initial price on any quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and the Goldcorp share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be exposed to losses.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.
Issuer: | Morgan Stanley
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Issue: | Trigger phoenix autocallable optimization securities
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Underlying stock: | Goldcorp Inc. (NYSE: GG)
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Amount: | $1,173,250
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Maturity: | Nov. 17, 2014
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Coupon: | 11.8%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | Par plus contingent coupon if Goldcorp shares finish at or above trigger price; otherwise, par plus stock return
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Call: | Automatically at par plus contingent coupon if Goldcorp shares close at or above initial price on a quarterly observation date
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Initial share price: | $29.75
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Trigger price: | $20.83, 70% of initial price
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Pricing date: | May 10
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Settlement date: | May 15
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Agent: | Morgan Stanley & Co. LLC with UBS Financial Services Inc. as dealer
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Fees: | 1.5%
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Cusip: | 61762E372
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