By Wendy Van Sickle
Columbus, Ohio, Oct. 7 – Morgan Stanley Finance LLC priced $2.89 million of contingent income autocallable securities due Oct. 7, 2021 linked to the Russell 2000 index 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 8% if the index closes at or above its coupon barrier, 70% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if the index closes above its initial level on any quarterly redemption date.
The payout at maturity will be par unless the index finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is a dealer.
| 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 index: | Russell 2000
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| Amount: | $2.89 million
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| Maturity: | Oct. 7, 2021
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| Coupon: | 8% per year, payable each month that index closes at or above coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | If final level is greater than or equal to downside threshold level, par; otherwise, full exposure to index’s decline
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| Call: | Par plus the contingent coupon if the index closes above its initial level on any quarterly redemption date after three months
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| Initial level: | 1,531.202
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| Coupon threshold: | 1,071.841, 70% of initial level
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| Downside threshold: | 1,071.841, 70% of initial level
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| Pricing date: | Oct. 1
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| Settlement date: | Oct. 6
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management LLC
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| Fees: | 0.6%
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| Cusip: | 61771B4Y7
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