By Toni Weeks
San Luis Obispo, Calif., Aug. 12 – Morgan Stanley priced $1.94 million of trigger phoenix autocallable optimization securities due Aug. 14, 2019 linked to the common stock of Qualcomm Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Qualcomm stock closes at or above the coupon barrier – 70.85% of the initial share price – on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 6%. Otherwise, no coupon will be paid that month.
If the shares close at or above the initial price on any monthly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Qualcomm shares finish at or above the 70.85% trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is the dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Qualcomm Inc. (Symbol: QCOM)
|
| Amount: | $1,936,500
|
| Maturity: | Aug. 14, 2019
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| Coupon: | 6%, payable monthly if stock closes at or above coupon barrier on observation date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Qualcomm shares finish at or above coupon barrier; par if shares finish below coupon barrier but at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Qualcomm shares close at or above initial price on any monthly observation date beginning Aug. 10, 2015
|
| Initial share price: | $73.88
|
| Coupon barrier/trigger: | $52.34, 70.85% of initial price
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| Pricing date: | Aug. 8
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| Settlement date: | Aug. 13
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| Agent: | Morgan Stanley & Co. LLC with UBS Financial Services Inc. as dealer.
|
| Fees: | 2.5%
|
| Cusip: | 61758S377
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