By Toni Weeks
San Luis Obispo, Calif., May 21 - Morgan Stanley priced $12.84 million of 0% airbag return optimization securities due May 23, 2018 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund return is positive, the payout at maturity will be par plus 150% of the return, subject to a maximum return of 70%.
If the fund return is negative but the final share price is greater than or equal to the conversion price, 80% of the initial price, the payout will be par.
If the final price is less than the conversion price, investors will receive a number of shares equal to $1,000 divided by the conversion price.
Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is the dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Airbag return optimization securities
|
| Underlying fund: | iShares MSCI Emerging Markets index fund
|
| Amount: | $12,839,000
|
| Maturity: | May 23, 2018
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If fund return is positive, par plus 1.5 times the return, up to maximum return of 70%; if fund return is negative but final share price is greater than or equal to conversion price, par; if final price is less than conversion price, 28.7853 shares
|
| Initial price: | $43.42
|
| Conversion price: | $34.74, 80% of initial price
|
| Pricing date: | May 17
|
| Settlement date: | May 22
|
| Agent: | Morgan Stanley & Co. LLC with UBS Financial Services Inc. as dealer
|
| Fees: | 3.5%
|
| Cusip: | 61762E455
|
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