Published on 8/30/2011 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $570,000 contingent coupon commodity-linked notes
By Toni Weeks
San Diego, Aug. 30 - Morgan Stanley priced $570,000 of contingent coupon commodity-linked notes due Aug. 31, 2015 linked to a basket of nine commodities and one commodity index, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket components are Brent blend crude oil, copper, corn, cotton, gasoline RBOB, nickel, palladium, silver, sugar and the S&P GSCI Livestock Index - Excess Return.
The notes 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 at 11%. If a commodity's return is negative, its component return will be the greater of the commodity return and negative 20%.
The payout at maturity will be par plus the final coupon, if any.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent coupon commodity-linked notes
|
| Underlying components: | Brent blend crude oil, copper, corn, cotton, gasoline RBOB, nickel, palladium, silver, sugar and the S&P GSCI Livestock Index - Excess Return, equally weighted
|
| Amount: | $570,000
|
| Maturity: | Aug. 31, 2015
|
| Coupon: | Sum of weighted component returns of basket commodities, floor of zero; if a commodity's return is positive, its component return will be 11%; if it is negative, its component return will be greater of commodity return and negative 20%
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon, if any
|
| Initial prices: | $111.36 for Brent crude oil, $9,090.50 for copper, 752.50 cents for corn, 103.92 cents for cotton, 293.46 cents for gasoline RBOB, $21,255 for nickel, $747 for palladium, 4,106 cents for silver, 30.22 cents for sugar and 211.2043 for S&P GSCI Livestock index
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 617482VP6
|
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