By Marisa Wong
Madison, Wis., Oct. 15 - Morgan Stanley priced $4.01 million of contingent income autocallable securities due Oct. 17, 2016 linked to Home Depot, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Home Depot stock closes at or above the 80% downside threshold level on a quarterly review date, the notes will pay a contingent quarterly coupon at an annual rate of 8.3% for that quarter.
If the shares close at or above the applicable redemption threshold on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent coupon. The redemption threshold is 105% of the initial price for the first four determination dates, 110% of the initial price for the next four dates and 115% for the last three dates.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock closes below the downside threshold level, in which case the payout will be a number of Home Depot shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Home Depot, Inc. (Symbol: HD)
|
| Amount: | $4,011,490
|
| Maturity: | Oct. 17, 2016
|
| Coupon: | 8.3% per year, payable quarterly if Home Depot stock closes at or above 80% downside threshold level on quarterly review date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent payment unless stock closes below downside threshold level, in which case 0.13103 Home Depot shares or, at issuer's option, cash equivalent
|
| Call: | At par plus contingent coupon if shares close at or above applicable redemption threshold on any of first 11 quarterly determination dates; redemption threshold is 105% of initial price for first four determination dates, 110% of initial price for next four dates and 115% for last three dates
|
| Initial share price: | $76.32
|
| Downside threshold: | $61.056, 80% of initial price
|
| Pricing date: | Oct. 11
|
| Settlement date: | Oct. 17
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61762W323
|
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