By Wendy Van Sickle
Columbus, Ohio, Dec. 5 – Morgan Stanley Finance LLC priced $7.43 million of contingent income autocallable securities due Dec. 4, 2020 linked to International Business Machines Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8.8% if the stock closes at or above the downside threshold, 80% of the initial price, on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its call level on any of the first 11 determination dates.
The call level will be 105% of the initial price for the first four dates, stepping up to 110% for the next four dates and 115% for the final three dates.
The payout at maturity will be par plus the final coupon unless the stock finishes below its downside threshold, in which case investors will lose 1% for each 1% decline of the stock.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities with step-up redemption threshold price
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| Underlying stock: | International Business Machines Corp.
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| Amount: | $7,427,800
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| Maturity: | Dec. 4, 2020
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| Coupon: | 8.8% per year, payable each quarter that stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to downside threshold, par plus final contingent coupon; otherwise, full exposure to decline
|
| Call: | At par plus contingent coupon if stock closes at or above call level on any of the first 11 determination dates; call level is 105% of initial price for first four dates, 110% for next four dates and 115% for last three dates
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| Initial share price: | $154.76
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| Downside threshold: | $123.808, 80% of initial price
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| Pricing date: | Dec. 1
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| Settlement date: | Dec. 6
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61768K471
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