Morgan Stanley to price knock-out notes linked to commodity basket

By Toni Weeks

San Luis Obispo, Calif., July 11 - Morgan Stanley plans to price 0% knock-out notes due Jan. 20, 2015 linked to a basket of commodities, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of Brent blend crude oil, palladium and soybeans.

A knock-out event occurs if the final basket level is less than the knock-out level, 80% of the initial basket level.

If a knock-out event occurs, the payout at maturity will be par plus the basket return with full exposure to losses.

If a knock-out event does not occur, the payout will be par plus the greater of the basket return and the contingent minimum return of 11.4%, subject to a maximum return of 15%.

The notes (Cusip: 61762GAC8) will price July 12 and settle July 17.

Morgan Stanley & Co. LLC is the agent, and J.P. Morgan Securities LLC is the dealer.

© 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.