By Wendy Van Sickle
Columbus, Ohio, July 26 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due July 26, 2027 linked to the worse performing of the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.75% for the first two years, then will pay a quarterly coupon at an annual rate of 8.75% if each index closes at or above its initial level on the determination date that quarter, in which case any previously unpaid quarterly coupon will also be paid.
After two, the notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par plus the contingent coupon unless either index finishes below its 50% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index.
The notes are guaranteed by Morgan Stanley.
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: | Euro Stoxx 50 and Russell 2000
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| Amount: | $1 million
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| Maturity: | July 26, 2027
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| Coupon: | 8.75% annualized, payable quarterly for first two years, then payable quarterly if each index closes at or above initial level on observation date for quarter, in which case any previous quarter’s unpaid coupon will also be paid
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each index finishes at or above downside threshold; otherwise, 1% loss for each 1% decline of worse performing index
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| Call: | After two years at par plus contingent payment if each index closes at or above initial level on any quarterly determination date
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| Initial index levels: | 3,451.71 for Stoxx, 1,435.839 for Russell
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| Downside thresholds: | 1,725.855 for Stoxx, 717.920 for Russell; 50% of initial levels
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| Pricing date: | July 21
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| Settlement date: | July 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3%
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| Cusip: | 61768CMU8
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