By Angela McDaniels
Tacoma, Wash., Nov. 17 - Morgan Stanley priced $1.54 million of 0% upside knock-out buffered securities due Nov. 20, 2012 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.
An upside knock-out event will occur if the price of gold trades above 175% of the initial price during the life of the securities.
If a knock-out event has occurred, the payout at maturity will be par plus 27%.
If a knock-out event has not occurred and the final gold price is greater than the initial price, the payout will be par plus 125% of the gold return.
If a knock-out event has not occurred and the final gold price is less than the initial price but greater than or equal to 90% of the initial price, the payout will be par. If the final price of gold is lower than the buffer, investors will lose 1.1111% for each 1% decline beyond the buffer.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Upside knock-out buffered securities
|
| Underlying commodity: | Gold
|
| Amount: | $1,541,000
|
| Maturity: | Nov. 20, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If gold trades above knock-out price during life of notes, par plus 27%; otherwise, par plus 125% of gold return if that return is positive, par if gold price falls by up to 10% or par minus 1.1111% for every 1% that gold price falls beyond 10%
|
| Initial gold price: | $1,368.50
|
| Knock-out price: | $2,394.875, or 175% of initial price
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 18
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 0.05%
|
| Cusip: | 617482PN8
|
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