By Toni Weeks
San Luis Obispo, Calif., Jan. 29 – Morgan Stanley priced $9.16 million of contingent income autocallable securities due Jan. 31, 2030 with five-year initial non-call period linked to the S&P GSCI Crude Oil Index – Excess Return, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will earn interest for the first year at the annualized rate of 8%, payable quarterly. After that, if the index closes at or above the coupon barrier level, 75% of the initial index level, on a quarterly determination date, the notes will pay the 8% coupon for that quarter.
Beginning Jan. 27, 2020, the notes will be called at par plus the contingent coupon if the index closes at or above the initial index level on any quarterly determination date other than the final determination date.
If the final index level is greater than or equal to the downside threshold level, 50% of the initial index level, the payout at maturity will be par plus the final contingent coupon, if any. Otherwise, investors will be fully exposed to the index’s decline.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley & Co. LLC
|
| Issue: | Contingent income autocallable securities
|
| Underlying index: | S&P GSCI Crude Oil Index – Excess Return
|
| Amount: | $9,156,000
|
| Maturity: | Jan. 31, 2030
|
| Coupon: | Fixed at 8% per year for first year; after that, 8% per year if index closes at or above coupon barrier level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final index level is greater than or equal to downside threshold level, par plus final contingent coupon, if any; otherwise, 1% loss for every 1% that final index level is less than initial index level
|
| Call: | Beginning Jan. 27, 2020, at par plus contingent coupon if index closes at or above initial level on any quarterly determination date other than final determination date
|
| Initial index level: | 251.3852
|
| Coupon barrier: | 188.5389, 75% of initial index level
|
| Downside threshold: | 125.6926, 50% of initial index level
|
| Pricing date: | Jan. 27
|
| Settlement date: | Jan. 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61762GCT9
|
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