By Susanna Moon
Chicago, July 1 – Morgan Stanley Finance LLC priced $2.16 million of contingent income autocallable securities due June 28, 2019 linked to the worse performing of the common stocks of International Business Machines Corp. and Gilead Sciences, Inc., 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 8% if each stock closes at or above the 50% downside threshold level on a determination date for that month.
The notes will be redeemed at par plus the contingent payment if each stock closes at or above its initial price on any determination date after six months.
The payout at maturity will be par plus the contingent quarterly payment unless either stock finishes below its 50% downside threshold level, in which case investors will be fully exposed to any losses of the worse performing stock.
The agent is Morgan Stanley & Co. LLC.
| 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 stocks: | International Business Machines Corp. (Symbol: IBM) and Gilead Sciences, Inc. (Symbol: GILD)
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| Amount: | $2,157,000
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| Maturity: | June 28, 2019
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| Contingent payment: | 8% annualized, payable monthly if each stock closes at or above downside threshold level on determination date for that month
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if each stock finishes at or above downside threshold; otherwise full exposure to any losses of worse performing stock
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| Call: | At par plus contingent payment if each stock closes at or above initial price on any determination date after six months
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| Initial share price: | $143.50 for IBM, $78.25 for Gilead
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| Downside threshold: | $71.75 for IBM, $39.125 for Gilead, 50% of initial price
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| Pricing date: | June 27
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| Settlement date: | June 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61766BBE0
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