By Wendy Van Sickle
Columbus, Ohio, May 13 – Morgan Stanley Finance LLC priced $2.08 million of contingent income autocallable securities due May 12, 2022 linked to the lesser performing of the common stocks of Cigna Corp. and Humana Inc., 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, 65% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 10.38%.
The notes will be called at par plus the contingent coupon if each stock closes at or above its call threshold level, 95% of its initial share price, on any quarterly determination date other than the final determination date.
If each stock’s final share price is greater than or equal to its 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 lesser-performing stock declines from its initial share price.
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 stocks: | Cigna Corp. and Humana Inc.
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| Amount: | $2,081,000
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| Maturity: | May 12, 2022
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| Coupon: | 10.38% per year, payable quarterly if each stock closes at or above downside threshold level on determination date for that quarter
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| 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; otherwise, 1% loss for every 1% that lesser-performing stock declines from initial share price
|
| Call: | At par plus contingent coupon if each stock closes at or above call threshold on any quarterly determination date other than final determination date
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| Initial share prices: | $155.86 for Cigna and $243.89 for Humana
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| Call thresholds: | $148.067 for Cigna and $231.696 for Humana; 95% of initial levels
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| Downside thresholds: | $101.309 for Cigna and $158.529 for Humana; 65% of initial levels
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| Pricing date: | May 9
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| Settlement date: | May 14
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3%
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| Cusip: | 61769HBC8
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