By Susanna Moon
Chicago, March 25 - Morgan Stanley priced $11.57 million of contingent income autocallable securities due March 27, 2017 with redemption threshold level linked to Bank of America Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
If Bank of America stock closes at or above the trigger level on a quarterly determination date, the notes will pay a contingent payment at an annual rate of 9.35% for that quarter.
If Bank of America stock closes at or above the redemption threshold level on any quarterly determination date, the notes will be redeemed at par plus the contingent payment.
The redemption threshold will be 105% of the initial share price on the first four determination dates, stepping up to 110% of the initial share price on the next four determination dates and to 115% of the initial share price on the final three determination dates.
If the Bank of America stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment.
Otherwise, investors will be fully exposed to any losses.
The agent is Morgan Stanley & Co. LLC.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities with redemption threshold level
|
| Underlying index: | Bank of America Corp.
|
| Amount: | $11,565,390
|
| Maturity: | March 27, 2017
|
| Contingent payment: | 9.35% annualized for quarter if Bank of America stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if Bank of America stock finishes at or above downside threshold; otherwise full exposure to any losses
|
| Call: | At par plus contingent payment if Bank of America stock closes at or above threshold on any determination date; redemption threshold will be 105% of the initial share price on the first four determination dates, stepping up to 110% of the initial share price on the next four determination dates and to 115% of the initial share price on the final three determination dates
|
| Initial share price: | $17.56
|
| Trigger level: | $14.048, 80% of initial price
|
| Pricing date: | March 21
|
| Settlement date: | March 26
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61760S647
|
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