By Susanna Moon
Chicago, Nov. 28 – Morgan Stanley Finance LLC priced $3.38 million of phoenix autocallable notes due Dec. 5, 2018 linked to Bank of America Corp. 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 quarterly coupon at an annual rate of 10% if the stock closes at or above its 75.6% downside threshold on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any of the three determination dates.
The payout at maturity will be par unless the stock finishes below its 75.6% downside threshold, in which case investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent. J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the placement agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Phoenix autocallable notes
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| Underlying stock: | Bank of America Corp. (Symbol: BAC)
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| Amount: | $3.38 million
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| Maturity: | Dec. 5, 2018
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| Coupon: | 10% per year, payable quarterly if stock closes at or above 75.6% downside threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless stock finishes below 75.6% downside threshold, in which case 1% loss for each 1% decline
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| Call: | At par plus contingent coupon if stock closes at or above initial level on any of the three determination dates
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| Initial level: | $26.62
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| Downside threshold: | $20.125, 75.6% of initial level
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| Pricing date: | Nov. 17
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| Settlement date: | Nov. 22
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| Agent: | Morgan Stanley & Co. LLC with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents
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| Fees: | 1%
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| Cusip: | 61768CUP0
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