By Toni Weeks
San Luis Obispo, Calif., Feb. 14 - Morgan Stanley priced $1.13 million of contingent income autocallable securities due Feb. 15, 2018 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Bank of America stock closes at or above the barrier level - 80% of the initial share price - on a monthly determination date, investors will receive a contingent coupon of 10% per year. Otherwise, no contingent payment will be made for that month.
If the closing share price is greater than the initial share price on any quarterly determination date beginning Feb. 15, 2015, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 70% of the initial share price, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, investors will share in those losses.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Bank of America Corp. (Symbol: BAC)
|
| Amount: | $1,133,000
|
| Maturity: | Feb. 15, 2018
|
| Coupon: | 10% per year if closing price is at least 80% of initial price on monthly determination date; otherwise, none
|
| Price: | Par
|
| Payout at maturity: | If final share price is at least 70% of initial, par plus contingent monthly payment; otherwise, full exposure to losses
|
| Initial price: | $12.25
|
| Barrier level: | $9.80, 80% of initial share price
|
| Downside threshold level: | $8.575, 70% of initial share price
|
| Call: | Par plus contingent payment if closing share price greater than initial share price on quarterly determination dates beginning Feb. 15, 2015
|
| Pricing date: | Feb. 12
|
| Settlement date: | Feb. 15
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JBX6
|
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