By Susanna Moon
Columbus, Ohio, March 22 – Morgan Stanley Finance LLC priced $6.15 million of contingent income autocallable securities due March 25, 2021 linked to the least performing of the American Depository Shares of Alibaba Group Holding Ltd. and the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.25% if each stock closes at or above its 60% downside threshold on the determination date that quarter.
The notes will be called at par if each stock closes at or above its initial level on any observation date.
The payout at maturity will be par 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.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| 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 indexes: | Alibaba Group Holding Ltd. and Bank of America Corp
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| Amount: | $6.15 million
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| Maturity: | March 25, 2021
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| Coupon: | 11.25% annualized, payable quarterly if each stock closes at or above 60% downside threshold on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above its initial level on any quarterly observation date
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| Initial levels: | $198.95 for Alibaba and $31.98 for BofA
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| Downside thresholds: | $119.37 for Alibaba and $19.188 for BofA; 60% of initial levels
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| Pricing date: | March 20
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| Settlement date: | March 23
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 2.5%
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| Cusip: | 61768P454
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