By Toni Weeks
San Luis Obispo, Calif., March 24 – Morgan Stanley priced $6.24 million of contingent income autocallable securities due March 26, 2018 linked to the worst performing of the common shares of Bank of Montreal, Toronto-Dominion Bank and Royal Bank of Canada, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 8% if each stock closes at or above its downside threshold level, 75% of its initial share price, on the determination date for that month.
The notes will be redeemed at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date.
If the notes are not called and each stock finishes at or above its downside threshold level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the decline of the worst-performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Bank of Montreal (Symbol: BMO), Toronto-Dominion Bank (Symbol: TD) and Royal Bank of Canada (Symbol: RY)
|
| Amount: | $6.42 million
|
| Maturity: | March 26, 2016
|
| Coupon: | 8% per year, payable quarterly if each stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price of each stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise full exposure to decline of worst-performing stock
|
| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any quarterly determination date
|
| Initial share prices: | $60.54 for BMO, $43.06 for TD, $60.76 for RBC
|
| Downside thresholds: | $45.405 for BMO, $32.295 for TD, $45.57 for RBC, 75% of initial share prices
|
| Pricing date: | March 20
|
| Settlement date: | March 25
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61761JXS3
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