By Wendy Van Sickle
Columbus, Ohio, March 17 – Morgan Stanley Finance LLC priced $10 million of buffered phoenix autocallable securities due March 18, 2022 linked to Tesla, Inc. common stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon plus any previously unpaid coupons at an annual rate of 18% if the stock closes at or above the 50% coupon threshold on a monthly observation date.
If the shares close at or above the initial price on any monthly determination date other than the final one, the notes will be called at par.
The payout at maturity will be par unless the stock finishes below the 50% buffer level, in which case investors will lose 2% for each 1% stock decline beyond 50%
Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as the placement agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Buffered phoenix autocallable securities
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| Underlying stock: | Tesla, Inc.
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| Amount: | $10 million
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| Maturity: | March 18, 2022
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| Coupon: | 18% annual rate, payable each month that stock closes at or above coupon threshold level on any monthly determination date, plus any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par if stock finishes at or above buffer level; otherwise, 2% loss for each 1% stock decline beyond buffer
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| Call: | At par if stock closes at or above initial share price on any monthly determination date other than final one
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| Initial share price: | $693.73
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| Coupon threshold/buffer level: | $346.865, 50% of initial price
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| Pricing date: | March 15
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| Settlement date: | March 17
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| Agents: | Morgan Stanley & Co. LLC with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents
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| Fees: | 0.5%
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| Cusip: | 61771VKY5
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