By Angela McDaniels
Tacoma, Wash., April 16 - Morgan Stanley priced $314,000 of contingent income autocallable securities due April 15, 2016 linked to the common stock of Las Vegas Sands Corp. with step-up redemption threshold level feature, according to a 424B2 filing with the Securities and Exchange Commission.
If Las Vegas Sands stock closes at or above the downside threshold level, 75% of the initial share price, on a monthly observation date, investors will receive a contingent monthly coupon at the rate of 10% per year. Otherwise, no interest will be paid for that month.
The notes will be automatically redeemed at par plus the contingent monthly coupon if Las Vegas Sands shares close at or above the redemption threshold level on any quarterly redemption determination date.
The redemption threshold level is 105% of the initial share price on determination dates one through four, 110% of the initial share price on determination dates five through eight and 115% of the initial share price on determination dates nine through 11.
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 monthly payment. Otherwise, investors will receive a number of Las Vegas Sands 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.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities with step-up redemption threshold level feature
|
| Underlying stock: | Las Vegas Sands Corp. (Symbol: LVS)
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| Amount: | $314,000
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| Maturity: | April 15, 2016
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| Coupon: | If Las Vegas Sands stock closes at or above downside threshold level on monthly observation date, paid at 10% per year; otherwise, no interest will be paid for that month
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent monthly payment; otherwise, 17.86 Las Vegas Sands shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | Automatically at par plus contingent monthly coupon if closing share price is greater than or equal to redemption threshold level on any of 11 quarterly determination dates
|
| Initial share price: | $55.99
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| Downside threshold: | $41.993, 75% of initial share price
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| Redemption threshold: | $58.79, or 105% of initial share price, on determination dates one through four; $61.589, or 110% of initial share price, on determination dates five through eight; $64.389, or 115% of initial share price, on determination dates nine through 11
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| Pricing date: | April 12
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| Settlement date: | April 17
|
| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61761JFB0
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