By Toni Weeks
San Luis Obispo, Calif., June 19 - Morgan Stanley priced $2.95 million of 0% trigger phoenix autocallable optimization securities due June 20, 2018 linked to the iShares Russell 2000 index fund and the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
If each fund closes at or above its trigger level, 68.71% of the initial level, on any quarterly observation date, the issuer will pay an annualized contingent coupon of 7.5% for that quarter.
If each fund closes at or above its initial level on any observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
The payout at maturity will be par plus the contingent coupon unless either fund finishes below the trigger level, in which case investors will be fully exposed to the decline of the least-performing fund.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying funds: | iShares Russell 2000 index fund and SPDR S&P 500 ETF Trust
|
| Amount: | $2,953,960
|
| Maturity: | June 20, 2018
|
| Coupon: | 7.5%, payable quarterly if each fund closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon unless either fund finishes below trigger level, in which case full exposure to decline in share price of least-performing fund
|
| Call: | Automatically at par plus contingent coupon if each fund closes at or above initial price on a quarterly observation date beginning June 16, 2014
|
| Initial share prices: | $97.72 for iShares Russell, $163.17 for SPDR trust
|
| Trigger price: | $67.14 for iShares Russell, $112.11 for SPDR trust, 68.71% of initial prices
|
| Pricing date: | June 14
|
| Settlement date: | June 19
|
| Agent: | Morgan Stanley & Co. LLC with UBS Financial Services Inc. as dealer
|
| Fees: | 2.5%
|
| Cusip: | 61762E521
|
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