Morgan Stanley plans issue of 0% Relays linked to S&P 500, Nikkei

By Jennifer Chiou

New York, Jan. 13 - Morgan Stanley plans to issue 0% global medium-term notes due 2010 in the Relays structure (Redeemable Equity-Linked Alternative Yield Securities) linked to the performance of the S&P 500 index and Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.

Under certain circumstances, the notes will automatically be redeemed for cash based on the performance of the indexes on three determination dates. If both index closing levels exceed their initial index values: on a determination date in January 2007, investors will receive 113.5%; on a determination date in January 2008, investors will receive 127%; and on a determination date in January 2009, investors will receive 140.5%.

If the notes are not redeemed before maturity, investors will receive 154% if the final levels of both indexes are greater than their initial levels on the final determination date in January 2010; par if the final value of either index is less than or equal to the initial level and neither index has decreased below the trigger level, 70% of the initial index value; share in the lower of the losses of either index if the final value of either index drops below the trigger level on the final determination date.

Morgan Stanley is the underwriter.

© 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.