By William Gullotti
Buffalo, N.Y., Nov. 1 – Morgan Stanley Finance LLC priced $2 million of contingent income autocallable securities due Oct. 31, 2024 linked to the shares of 3d Systems Corp. and Overstock.com, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 15% if each underlying stock closes at or above its 60% coupon barrier on the corresponding observation date.
The notes will be called at par plus coupon if each stock closes at or above its call level, 80% of initial level, on any monthly review date after three months.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its coupon barrier.
If the worst performer finishes below its coupon barrier but at or above its 50% downside threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Issue: | Contingent income autocallable securities
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| Guarantor: | Morgan Stanley
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| Underlying stocks: | 3d Systems Corp., Overstock.com, Inc.
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| Amount: | $2 million
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| Maturity: | Oct. 31, 2024
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| Coupon: | 15% annualized, payable monthly if each stock closes at or above coupon barrier on relevant review date
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| Price: | Par of $10
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| Payout at maturity: | If each stock finishes at or above coupon barrier, par plus final coupon; if any stock declines below coupon barrier but each stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing stock from initial level
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| Call: | At par plus coupon if each stock closes at or above its call level on any monthly call date after three months
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| Initial levels: | $27.05 for 3d Systems, $77.16 for Overstock
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| Call levels: | $21.64 for 3d Systems, $61.728 for Overstock; 80% of initial levels
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| Coupon barrier levels: | $16.23 for 3d Systems, $46.296 for Overstock; 60% of initial levels
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| Downside thresholds: | $13.525 for 3d Systems, $38.58 for Overstock; 50% of initial levels
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 1
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61773F6N8
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