By Angela McDaniels
Tacoma, Wash., April 23 - Morgan Stanley priced $6.35 million of contingent income autocallable securities due April 24, 2014 linked to the common stock of Halliburton Co., according to an FWP filing with the Securities and Exchange Commission.
If Halliburton stock closes at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon of 2.025% for that quarter. The amount is equivalent to 8.1% per year.
If the closing share price is greater than or equal to the initial share price on any of the first three quarterly determination dates, the notes will be automatically redeemed at par of $10 plus the contingent quarterly coupon.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent quarterly coupon. Otherwise, the payout will be a number of Halliburton shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Halliburton Co. (NYSE: HAL)
|
| Amount: | $6.35 million
|
| Maturity: | April 24, 2014
|
| Contingent coupon: | 2.025% (equivalent to 8.1% per year) payable quarterly if Halliburton stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent coupon; otherwise, 0.26874 Halliburton shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | Automatically at par plus contingent coupon if closing share price is greater than or equal to initial share price on any of first three quarterly determination dates
|
| Initial share price: | $37.21
|
| Downside threshold: | $27.9075, 75% of initial share price
|
| Pricing date: | April 19
|
| Settlement date: | April 24
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61761M821
|
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