By Sarah Lizee
Olympia, Wash., May 28 – Morgan Stanley Finance LLC priced $3.18 million of contingent income buffered autocallable securities due May 25, 2021 linked to the lesser performing of the SPDR S&P Oil & Gas Exploration & Production ETF and the United States Oil Fund, LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 8.5% per year if each underlier closes at or above its buffer level, 75% of its initial level, on the determination date for that month.
After six months, the notes will be automatically called at par if each underlier closes at or above its initial level on any monthly determination date.
The payout at maturity will be par unless either underlier finishes below its buffer level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines beyond 25%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income buffered autocallable securities
|
| Underliers: | SPDR S&P Oil & Gas Exploration & Production ETF and United States Oil Fund, LP
|
| Amount: | $3,175,000
|
| Maturity: | May 25, 2021
|
| Coupon: | 8.5% per year, payable monthly if each underlier closes at or above buffer level on determination date
|
| Price: | Par
|
| Payout at maturity: | Par unless either underlier finishes below buffer level, in which case 1% loss for every 1% that lesser-performing underlier declines beyond 25%
|
| Call: | After six months, automatically at par if each underlier closes at or above initial level on any monthly determination date
|
| Initial levels: | $29.24 for S&P Oil & Gas, $13.15 U.S. Oil
|
| Buffer levels: | $21.93 for S&P Oil & Gas, $9.863 U.S. Oil; 75% of initial levels
|
| Pricing date: | May 20
|
| Settlement date: | May 23
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.75%
|
| Cusip: | 61769HBL8
|
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