By Angela McDaniels
Tacoma, Wash., March 30 - Morgan Stanley priced $5.15 million of trigger phoenix autocallable optimization securities due March 31, 2017 linked to the common stock of Intel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Intel stock closes at or above the trigger price - 65% of the initial share price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 10% per year. Otherwise, no coupon will be paid that month.
Beginning March 28, 2013, if the shares close at or above the initial price on a monthly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Intel shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Intel Corp. (Symbol: INTC)
|
| Amount: | $5,153,900
|
| Maturity: | March 31, 2017
|
| Coupon: | 10% per year, payable monthly if stock closes at or above trigger price on observation date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Intel shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Beginning March 28, 2013, automatically at par plus contingent coupon if Intel shares close at or above initial price on a monthly observation date
|
| Initial share price: | $27.80
|
| Trigger price: | $18.07, 65% of initial share price
|
| Pricing date: | March 28
|
| Settlement date: | March 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | UBS Financial Services Inc.
|
| Fees: | 2.5%
|
| Cusip: | 61760T603
|
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