New Issue: Morgan Stanley sells $5.3 million contingent income autocalls on Nasdaq, Dow, Russell

By Wendy Van Sickle

Columbus, Ohio, Aug. 4 – Morgan Stanley Finance LLC priced $5.3 million of contingent income autocallable securities due April 29, 2021 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at the rate of 12.2% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that quarter, in which case a coupon will also be paid for any previously unpaid quarter during the life of the notes.

The notes will be automatically called at par if each index closes at or above its initial level on any quarterly call determination date.

The payout at maturity will be par any index finishes below its 75% 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
Guarantor:	Morgan Stanley
Issue:	Contingent income autocallable securities
Underlying indexes:	Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
Amount:	$5.3 million
Maturity:	April 29, 2021
Coupon:	12.2% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter, in which case a coupon will also be paid for any previously unpaid quarter during life of notes
Price:	Par
Payout at maturity:	Par unless any index finishes below its downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level
Call:	Automatically at par if each index closes at or above its initial level on any quarterly call determination date
Initial levels:	1,467.555 for Russell, 10,483.13 for Nasdaq and 26,469.89 for Dow
Coupon barriers/downside thresholds:	1,000.666 for Russell, 7,862.348 for Nasdaq and 19,852.418 for Dow; 75% of initial levels
Pricing date:	July 27
Settlement date:	July 30
Agent:	Morgan Stanley & Co. LLC
Fees:	2%
Cusip:	61771BA20

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