By Sarah Lizee
Olympia, Wash., Jan. 31 – Morgan Stanley Finance LLC priced $7.17 million of contingent income autocallable securities due July 29, 2020 linked to the common stock of General Electric Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 13.5% if the shares close at or above the 80% coupon barrier level on the observation date for that month.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any quarterly determination date other than the final one.
The payout at maturity will be par unless the shares finish below the 80% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | General Electric Co.
|
| Amount: | $7,170,500
|
| Maturity: | July 29, 2020
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| Coupon: | 13.5% per year, payable monthly if shares close at or above coupon barrier on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if shares close at or above initial share price on any quarterly determination date other than the final one
|
| Initial share price: | $11.71
|
| Coupon barrier level: | $9.37, 80% of initial level
|
| Downside threshold: | $9.37, 80% of initial level
|
| Pricing date: | Jan. 24
|
| Settlement date: | Jan. 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 1.25%
|
| Cusip: | 78014K311
|
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