By Wendy Van Sickle
Columbus, Ohio, March 21 – Morgan Stanley Finance LLC priced $5.9 million of contingent income autocallable securities due March 20, 2020 linked to the common stocks of Apple Inc. and Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Morgan Stanley will guarantee the notes.
The notes will pay a contingent quarterly coupon at an annualized rate of 9.2% if both stocks close above their downside threshold level on the quarterly observation date. The downside threshold level is 60% of the initial price.
Starting March 22, 2018, the notes will be automatically redeemed if both stocks close at or above their initial prices on a quarterly determination date.
The payout at maturity will be par plus the contingent coupon if both stocks finish above the downside threshold level. Otherwise investors will be exposed to the performance of the worst performing stock.
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 stocks: | Apple Inc. and Bank of America Corp.
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| Amount: | $5.9 million
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| Maturity: | March 20, 2020
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| Coupon: | 9.2% per year, payable each quarter that each stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If final share price of lesser performing stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to decline of worse performer
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| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any determination date after one year
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| Initial share prices: | $139.99 for Apple, $24.86 for BofA
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| Downside thresholds: | $83.994 for Apple, $14.916 for BofA; 60% of initial share prices
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| Pricing date: | March 17
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| Settlement date: | March 22
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 2.5%
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| Cusip: | 61766V735
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