By Susanna Moon
Chicago, Dec. 9 - Morgan Stanley priced $25.49 million of contingent income autocallable securities due Dec. 12, 2012 linked to Transocean Ltd. shares, according to a 424B2 with the Securities and Exchange Commission.
If Transocean stock closes at or above the downside threshold level - 65% of the initial share price - on a quarterly determination date, investors will receive a contingent quarterly payment of $0.435 for each $10.00 note.
If the closing share price is greater than the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par plus the contingent payment.
If the notes are not called and the final share price at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.
Otherwise, the payout will be a number of Transocean shares equal to the principal amount of notes divided by the initial share price or, at issuer's option, the cash equivalent.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as distributor.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Transocean Ltd. (NYSE: RIG)
|
| Amount: | $25,487,590
|
| Maturity: | Dec. 12, 2012
|
| Coupon: | 4.35% quarterly payment if closing price is at least 65% of initial price on quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above threshold level, par plus contingent quarterly payment; otherwise, 0.22031 Transocean shares
|
| Initial price: | $45.39
|
| Threshold level: | $29.5035, 65% of initial share price
|
| Call option: | Par plus contingent payment if closing share price greater than initial share price on first three quarterly determination dates
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 12
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61760T264
|
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