By Sarah Lizee
Olympia, Wash., May 29 – Morgan Stanley Finance LLC priced $1.5 million of contingent income autocallable securities due May 25, 2022 linked to the worst performing of the common stocks of FedEx Corp., Home Depot, Inc. and Walt Disney Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 55% of its initial share price, on a monthly observation date, the notes will pay a contingent payment that month at an annualized rate of 8.55%, plus any previously unpaid coupons.
Beginning Nov. 25, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any monthly determination date.
If each stock’s final share price is greater than or equal to its 55% downside threshold level, the payout at maturity will be par plus the final contingent coupon and any previously unpaid coupons. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its 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 stocks: | FedEx Corp., Home Depot, Inc. and Walt Disney Co.
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| Amount: | $1.5 million
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| Maturity: | May 25, 2022
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| Coupon: | 8.55% per year, payable monthly if each stock closes at or above downside threshold level on observation date for that month, plus any previously unpaid coupons
|
| Price: | Par
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| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon, plus any previously unpaid coupons; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | Beginning Nov. 25, at par plus contingent coupon if each stock closes at or above initial share price on any monthly determination date other than final determination date
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| Initial share prices: | $168.21 for FedEx, $190.95 for Home Depot, $133.91 for Disney
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| Downside thresholds: | $92.516 for FedEx, $105.023 for Home Depot, $73.651 for Disney; 55% of initial share price
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| Pricing date: | May 20
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| Settlement date: | May 23
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61769HBP9
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