By Susanna Moon
Chicago, Jan. 7 - Morgan Stanley priced $2.59 million of contingent income autocallable securities due Jan. 9, 2017 with step-up redemption threshold level linked to the Qualcomm Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.05% if stock closes at or above its 80% barrier level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the redemption level on any of the first 11 determination dates. The redemption level will be 105% of the initial share price for the first four call dates, stepping up to 110% of the initial share price for the next four dates and to 115% of the initial share price for the final three dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 80% barrier level, in which case investors will receive a number of Qualcomm shares equal to par of $10.00 divided by the initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Qualcomm Inc. (Symbol: QCOM)
|
| Amount: | $2,585,660
|
| Maturity: | Jan. 9, 2017
|
| Coupon: | 8.05% annualized for each quarter that shares close at or above barrier level on quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below barrier level, in which case 0.13719 Qualcomm shares
|
| Call: | At par plus the contingent coupon if stock closes at or above the redemption level on any of first 11 review dates; redemption level will be 105% of the initial share price for the first four call dates, stepping up to 110% of the initial share price for the next four dates and to 115% of the initial share price for the final three dates
|
| Initial level: | $72.89
|
| Barrier level: | $58.312, 80% of initial level
|
| Pricing date: | Jan. 3
|
| Settlement date: | Jan. 8
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61762W828
|
© 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.
