By Marisa Wong
Madison, Wis., May 2 - Morgan Stanley priced $7.1 million of contingent income autocallable securities due May 2, 2014 linked to the common stock of Las Vegas Sands Corp., 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 quarterly observation date, investors will receive a contingent quarterly coupon of 2.9%. Otherwise, no interest will be paid for that quarter.
The notes will be automatically redeemed at par plus the contingent quarterly coupon if Las Vegas Sands shares close at or above the initial price on any of the first three quarterly determination dates.
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 quarterly 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
|
| Underlying stock: | Las Vegas Sands Corp. (Symbol: LVS)
|
| Amount: | $7.1 million
|
| Maturity: | May 2, 2014
|
| Coupon: | If Las Vegas Sands stock closes at or above downside threshold level on quarterly observation date, paid at 10% per year; otherwise, no interest will be paid for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent quarterly payment; otherwise, 0.17778 Las Vegas Sands shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | Automatically at par plus contingent quarterly coupon if closing share price is greater than or equal to initial price on any of first three quarterly determination dates
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| Initial share price: | $56.25
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| Downside threshold: | $42.188, 75% of initial share price
|
| Pricing date: | April 30
|
| Settlement date: | May 3
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61762E182
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