By Susanna Moon
Chicago, April 9 - Morgan Stanley priced $845,000 of phoenix autocallable securities due April 23, 2014 linked to Lennar Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 16.3% if Lennar stock closes at or above the 80% trigger level on a quarterly observation date.
If the shares close at or above the initial price on any of the first three determination dates, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Lennar shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent, with JPMorgan Chase Bank, NA as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Phoenix autocallable securities
|
| Underlying index: | Lennar Corp. (NYSE: LEN)
|
| Amount: | $845,000
|
| Maturity: | April 23, 2014
|
| Contingent payment: | 16.3% annualized for each quarter that Lennar stock closes at or above downside threshold level on quarterly determination date
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus contingent coupon if Lennar stock finishes at or above downside threshold; otherwise full exposure to any losses
|
| Call: | At par plus contingent payment if Lennar stock closes at or above initial share price on any of the first three quarterly determination dates
|
| Initial share price: | $39.34
|
| Trigger level: | $31.472, 80% of initial price
|
| Pricing date: | April 5
|
| Settlement date: | April 10
|
| Agents: | Morgan Stanley & Co. LLC with JPMorgan Chase Bank, NA as dealer
|
| Fees: | 1%
|
| Cusip: | 61761JFA2
|
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