By Devika Patel
Knoxville, Tenn., June 20 – Morgan Stanley Finance LLC priced $5.37 million of contingent income autocallable securities due June 20, 2019 linked to the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annualized rate of 11.15% if the index closes at or above its coupon barrier, 80% of its initial level, on a quarterly determination date.
The notes will be called at par of $10 plus the contingent coupon if the index closes at or above its initial level on any quarterly determination date beginning on Sept. 18.
The payout at maturity will be par plus the final contingent coupon unless the index finishes below the 80% downside threshold, in which case investors will lose 1% for each 1% decline of the index from its initial level.
Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying index: | Euro Stoxx Banks
|
| Amount: | $5,367,000
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| Maturity: | June 20, 2019
|
| Contingent coupon: | 11.15% per year, payable quarterly if index closes at or above its coupon barrier on quarterly determination date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus the final contingent coupon unless the index finishes below the downside threshold, in which case 1% loss for each 1% decline of index from initial level
|
| Call: | Automatically at par plus the contingent coupon if the index closes at or above its initial level on any quarterly determination date beginning on Sept. 18, 2017
|
| Initial level: | 129.03
|
| Coupon barrier level: | 103.224, 80% of initial level
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| Downside threshold: | 103.224, 80% of initial level
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| Pricing date: | June 16
|
| Settlement date: | June 21
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61768CKP1
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