By Angela McDaniels
Tacoma, Wash., May 15 – Morgan Stanley priced $1.93 million of contingent income autocallable securities due May 18, 2017 linked to the common stock of Tesla Motors, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annualized rate of 11% if Tesla shares close at or above the downside threshold level, 70% of the initial share price, on the determination date for that month.
The notes will be called at par plus the contingent coupon if Tesla shares close at or above the initial share price on any quarterly redemption determination date.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
Morgan Stanley& Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Tesla Motors, Inc. (Symbol: TSLA)
|
| Amount: | $1.93 million
|
| Maturity: | May 18, 2017
|
| Coupon: | 11% per year, payable monthly if Tesla shares close at or above downside threshold level on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if Tesla shares close at or above initial share price on any quarterly determination date
|
| Initial share price: | $243.18
|
| Downside threshold: | $170.226, 70% of initial share price
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| Pricing date: | May 13
|
| Settlement date: | May 18
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61761JYQ6
|
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