By Wendy Van Sickle
Columbus, Ohio, June 22 – Morgan Stanley Finance LLC priced $7.92 million of contingent income autocallable securities due June 25, 2019 linked to the worse performing of the Consumer Discretionary Select Sector SPDR Fund, the Energy Select Sector SPDR Fund and the Healthcare Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.87% if each fund closes above its downside threshold, 75% of the initial level, on the observation date for that quarter.
The notes will be redeemed at par plus the coupon if each fund closes above its initial level on any quarterly redemption date.
The payout at maturity will be par plus any contingent coupon unless any fund closes below its 75% threshold, in which cases investors will be fully exposed to the losses of the worst performing fund.
The notes will be guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| 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 funds: | Consumer Discretionary Select Sector SPDR Fund, Energy Select Sector SPDR Fund and Healthcare Select Sector SPDR Fund
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| Amount: | $7,919,000
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| Maturity: | June 25, 2019
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| Coupon: | 8.87% annualized, payable each quarter that each fund closes at or above downside threshold on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each fund finishes above downside threshold, par; otherwise, full exposure to losses of worst performing fund
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| Call: | At par if each fund closes at or above initial share price on any quarterly determination date
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| Initial levels: | $89.70 for Consumer Discretionary, $65.04 for Energy, $78.76 for Healthcare
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| Downside thresholds: | $67.275 for Consumer Discretionary, $48.78 for Energy, $59.07 for Healthcare; 75% of initial levels
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| Pricing date: | June 20
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| Settlement date: | June 23
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 1.75%
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| Cusip: | 61768CLL9
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