By Toni Weeks
San Luis Obispo, Calif., July 28 – Morgan Stanley priced $1.13 million of airbag phoenix autocallable optimization securities due Jan. 31, 2017 linked to the common stock of lululemon athletica inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 10.72% per year if lululemon shares close at or above the coupon barrier, 70% of the initial share price, on the observation date for that month.
The notes will be automatically called at par if lululemon shares close at or above the initial share price on any autocall observation date, which occur quarterly.
If the notes are not called and the final price of lululemon shares is greater than or equal to the conversion price, 85% of the initial share price, the payout at maturity will be par. Otherwise, investors will receive a number of lululemon shares equal to $1,000 divided by the conversion price.
Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is acting as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Airbag phoenix autocallable optimization securities
|
| Underlying stock: | lululemon athletica inc. (Symbol: LULU)
|
| Amount: | $1,128,000
|
| Maturity: | Jan. 31, 2017
|
| Coupon: | 10.72% annualized for each month that lululemon shares close at or above coupon barrier on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless final share price is less than conversion price, in which case 19.2108 lululemon shares
|
| Call: | At par if lululemon shares close at or above initial share price on any quarterly observation date
|
| Initial share price: | $61.24
|
| Coupon barrier: | $42.87, 70% of initial level
|
| Conversion price: | $52.05, 85% of initial share price
|
| Pricing date: | July 24
|
| Settlement date: | July 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | UBS Financial Services Inc.
|
| Fees: | 1.5%
|
| Cusip: | 61765G697
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
