Morgan Stanley plans contingent coupon commodity-linked notes

By Toni Weeks

San Diego, July 27 - Morgan Stanley plans to price contingent coupon commodity-linked notes due Aug. 31, 2015 linked to a basket of nine commodities and one commodity index, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket components include Brent blend crude oil, copper, corn, cotton, gasoline RBOB, nickel, palladium, silver, sugar and the S&P GSCI Livestock Index - Excess Return.

The notes will pay a coupon each year equal to the sum of the weighted component returns of the basket commodities, subject to a floor of zero. If a commodity's return is positive, its component return will be set to a fixed return of 11% to 13%. The actual coupon will be set at pricing. If a commodity's return is negative, its component return will be the greater of the commodity return and negative 20%.

The payment at maturity will be par plus the final coupon, if any.

The notes (Cusip: 617482VP6) are expected to price Aug. 26 and settle Aug. 31.

Morgan Stanley & Co. LLC is the agent.

© 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.