By Kiku Steinfeld
Chicago, May 21 – Morgan Stanley Finance LLC priced $1 million of 0% jump securities with autocallable feature due May 20, 2025 linked to the worst performing of the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be automatically called at par plus 13.5% per year if each index closes at or above its call level on any annual determination date. The call level for each index will be 95% of its initial level.
If the notes are not called and the final level of each index is greater than or equal to 95% of its initial level, the payout at maturity will be par plus 67.5%.
If the final level of the worst performing index is less than 95% of its initial level but greater than or equal to its downside threshold level, 70% of its initial level, the payout will be par.
If the final level of either index is less than its downside threshold level, investors will lose 1% for every 1% the lesser-performing index declines from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | Dow Jones industrial average and Russell 2000 index
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| Amount: | $1,000,000
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| Maturity: | May 20, 2025
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| Coupon: | 0%
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| Price: | Par
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| Call: | Automatically called at par plus 13.5% per year if each index closes at or above its call level on any annual determination date; call level for each index will be 95% of its initial level
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| Payout at maturity: | If the notes are not called and the final level of each index is greater than or equal to 95% of its initial level, par plus 67.5%; if the final level of the worst performing index is less than 95% of its initial level but greater than or equal to its downside threshold level, par; if the final level of either index is less than its downside threshold level, 1% loss for every 1% the lesser-performing index declines from its initial level
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| Initial levels: | 23,685.42 for Dow, 1,256.992 for Russell
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| Call levels: | 22,501.149 for Dow, 1,194.142 for Russell; 95% of initial levels
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| Downside thresholds: | 16,579.794 for Dow, 879.894 for Russell; 70% of initial levels
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| Pricing date: | May 15
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| Settlement date: | May 20
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61771BAA2
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