By Wendy Van Sickle
Columbus, Ohio, May 15 – Morgan Stanley Finance LLC priced $3.35 million of contingent income autocallable securities due May 13, 2022 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If Facebook shares close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.5%.
The notes will be called at par of $10 plus the contingent coupon if Facebook shares close at or above the initial share price on any quarterly determination date other than the final determination date.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Facebook, Inc. (Symbol: FB)
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| Amount: | $3,349,990
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| Maturity: | May 13, 2022
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| Coupon: | 9.45% per year, payable quarterly if Facebook shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if Facebook shares close at or above initial share price on any quarterly determination date other than final determination date
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| Initial share price: | $188.34
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| Downside threshold: | $141.255, 75% of initial share price
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| Pricing date: | May 10
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| Settlement date: | May 15
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
|
|
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| Cusip: | 61768Y422
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