By Sarah Lizee
Olympia, Wash., July 8 – Morgan Stanley Finance LLC priced $1.5 million of contingent income autocallable securities due April 1, 2021 linked to the least performing of the Russell 2000 index and the Dow Jones industrial average, 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 the rate of 14.75% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that month.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless either index closes below its 70% downside threshold, in which case investors will lose 1% for every 1% that the least-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: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average
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| Amount: | $1.5 million
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| Maturity: | April 1, 2021
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| Coupon: | 14.75% per year, payable monthly if each index closes at or above barrier level on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par unless either index closes below its downside threshold, in which case 1% loss for every 1% that least-performing index declines from its initial level
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| Call: | Automatically at par if each index closes at or above initial level on any quarterly determination date
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| Initial index levels: | 25,595.8 for Dow, 1,421.207 for Russell
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| Coupon barrier levels: | 17,917.06 for Dow, 994.845 for Russell; 70% of initial levels
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| Downside thresholds: | 17,917.06 for Dow, 994.845 for Russell; 70% of initial levels
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| Pricing date: | June 29
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| Settlement date: | July 2
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61771BQK3
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