By Taylor Fox
New York, Oct. 16 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Sept. 20, 2023 linked to the least performing of the common stocks of 3M Co. and Dow Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 10.75% if both stocks close at or above the 60% downside threshold level on the observation date for that quarter.
After six months, the notes will be called at par plus the contingent coupon if both stocks close at or above their initial prices on any quarterly determination date.
The payout at maturity will be par unless either stock finishes below the 60% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price of the worst performer.
Morgan Stanley & Co. LLC is the agent.
| 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 stocks: | 3M Co. and Dow Inc.
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| Amount: | $500,000
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| Maturity: | Sept. 20, 2023
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| Coupon: | 10.75% per year, payable quarterly if both stocks close at or above downside threshold level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If final stock price of both stocks is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price of worst performer
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| Call: | After six months, at par plus contingent coupon if both stocks close at or above initial share price on any quarterly determination date
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| Initial share prices: | $166.57 for 3M and $51.07 for Dow
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| Downside thresholds: | $99.942 for 3M and $30.642 for Dow, 60% of initial levels
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61771B3J1
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