By Taylor Fox
New York, Feb. 16 – Morgan Stanley Finance LLC priced $474,000 of contingent income autocallable securities due July 26, 2022 linked to the ARK Innovation ETF, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund close at or above the coupon threshold level, 60% of the initial price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 13%.
The notes will be called at par plus the contingent coupon if the fund closes at or above the call threshold, 100% of the stock’s initial price, on any quarterly determination date other than the final one after six months.
If the final fund price is greater than or equal to the downside threshold level, 60% of the initial price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final fund price is less than the initial fund price.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying fund: | ARK Innovation ETF
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| Amount: | $474,000
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| Maturity: | July 26, 2022
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| Coupon: | 13% per year, payable monthly if fund close at or above coupon threshold level on determination date for that month
|
| Price: | Par
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| Payout at maturity: | If final fund price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final fund price is less than initial share price
|
| Call: | At par plus the contingent coupon if the fund closes at or above the call, 100% of initial price, on any quarterly determination date other than the final one after six months
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| Initial price: | $144.81
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| Coupon threshold level: | $86.886; 60% of initial price
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| Downside threshold level: | $86.886; 60% of initial price
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| Pricing date: | Jan. 21
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| Settlement date: | Jan. 26
|
| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.875%
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| Cusip: | 61771ED70
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