New Issue: Morgan Stanley prices $5 million contingent income autocallables linked to indexes

By Wendy Van Sickle

Columbus, Ohio, Oct. 5 – Morgan Stanley Finance LLC priced $5 million contingent income autocallable securities due Oct. 4, 2022 linked to the least performing of the Euro Stoxx 50 index, the Tokyo Stock Price index and the Russell 2000 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 8.5% per year if each index closes at or above its coupon barrier, 75% of its initial level, on the determination date for that quarter.

The notes will be automatically called at par plus the related contingent coupon if each index closes at or above its initial level on any quarterly redemption determination date other than the final determination date.

The payout at maturity will be par unless the final level of any index is less than its 70% downside threshold level, in which case investors will lose 1% for each 1% that the least-performing index declines from its initial level.

Morgan Stanley & Co. LLC Morgan Stanley Smith Barney LLC are the agents.

Issuer:	Morgan Stanley Finance LLC
Gurantor:	Morgan Stanley
Issue:	Contingent income autocallable securities
Underlying indexes:	Tokyo Stock Price, Russell 2000 and Euro Stoxx 50
Amount:	$5 million
Maturity:	Oct. 4, 2022
Coupon:	8.5% per year, payable quarterly if each index closes at or above coupon barrier on review date for that quarter
Price:	Par
Payout at maturity:	Par unless any index finishes below downside threshold level, in which 1% loss for every 1% that least-performing index finishes below initial level
Call:	Automatically at par plus contingent coupon if each index closes at or above initial level on any quarterly review date other than final one
Initial index levels:	1,674.75 for Tokyo, 3,594.85 for Stoxx, 1,490.861 for Russell
Coupon barriers:	1,256.063 for Tokyo, 2,696.138 for Stoxx, 1,118.146 for Russell; 75% of initial levels
Downside thresholds:	1,172.325 for Tokyo, 2,516.395 for Stoxx, 1,043.6027 for Russell; 70% of initial levels
Pricing date:	Sept. 29
Settlement date:	Oct. 4
Agents:	Morgan Stanley & Co. LLC and Morgan Stanley Smith Barney LLC
Fees:	3%
Cusip:	61768CRH2

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