By Marisa Wong
Morgantown, W.Va., Feb. 7 – Morgan Stanley Finance LLC priced $6 million of contingent income autocallable securities due Feb. 3, 2020 linked to the worst performing of the common stocks of Amgen Inc., Visa Inc. and NIKE, Inc., 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 an annual rate of 9.5% if each stock closes at or above its downside threshold, 60% of its initial level, on the determination date for that month.
The notes will be called at par of $10 plus the contingent coupon if each stock closes above its initial level on any monthly review date beginning May 3.
The payout at maturity will be par plus the final contingent coupon unless any stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses 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: | Amgen Inc. (Symbol: AMGN), Visa Inc. (Symbol: V) and NIKE, Inc. (Symbol: NKE)
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| Amount: | $6 million
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| Maturity: | Feb. 3, 2020
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| Coupon: | 9.5% per year, payable each month that each stock closes at or above downside threshold level on determination date for that month
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| Price: | Par
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| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to decline of worst performer
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| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any monthly review date beginning May 3
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| Initial share prices: | $154.43 for Amgen, $83.70 for Visa, $53.08 for Nike
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| Downside thresholds: | $92.658 for Amgen, $50.22 for Visa, $31.848 for Nike; 60% of initial share prices
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| Pricing date: | Jan. 30
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| Settlement date: | Feb. 2
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768CDX2
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