By Susanna Moon
Chicago, Jan. 4 – Morgan Stanley Finance LLC priced $3.75 million of contingent income autocallable securities due Dec. 31, 2020 linked to Amazon.com, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.7% if the stock closes at or above its 80% downside threshold on the determination date that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its redemption threshold on any of the first 11 determination dates.
The call level will be 105% of the initial level on the first four determination dates, stepping up to 110% of the initial level for the next four determination dates and to 115% of the initial level for the final determination dates.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
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 stock: | Amazon.com, Inc. (Symbol: AMZN)
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| Amount: | $3,753,190
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| Maturity: | Dec. 31, 2020
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| Coupon: | 8.7% annualized, payable quarterly if stock closes at or above downside threshold on determination date that quarter
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| Price: | Par
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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| Call: | At par if stock closes at or above call level on first 11 determination dates; call level is 105% of the initial level for first four determination dates, 110% for next four dates and 115% for final three dates
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| Initial level: | $1,186.10
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| Downside threshold: | $948.88, 80% of initial level
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| Pricing date: | Dec. 28
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| Settlement date: | Jan. 3
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 2%
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| Cusip: | 61768K877
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