Morgan Stanley to price knock-out notes due 2014 linked to gold

By Marisa Wong

Madison, Wis., Feb. 27 - Morgan Stanley plans to price 0% knock-out notes due Sept. 8, 2014 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-out event occurs if the final gold price is less than the knock-out level, 85% of the initial gold price.

If a knock-out event occurs, the payout at maturity will be par plus the gold return with full exposure to losses. Otherwise, investors will share in any gain in gold, subject to a maximum return of 19.3%, and will receive at least par.

The notes (Cusip: 6174824A9) will price on March 1 and settle on March 6.

Morgan Stanley & Co. LLC is the agent, and J.P. Morgan Securities LLC is the dealer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.