By Marisa Wong
Morgantown, W.Va., March 13 – Morgan Stanley Finance LLC priced $4.62 million of fixed-income buffered securities due March 8, 2021 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The securities will pay a fixed semiannual coupon at an annual rate of 1.9%.
The payout at maturity will be par plus the average share return plus the buffered downside return.
The average share return is (a) the average share price minus the initial share price divided by (b) the initial share price, subject to a floor of zero. The average share price will be the average of the closing share prices on June 3, 2020, Sept. 3, 2020, Dec. 3, 2020 and March 3, 2021.
The buffered downside return is (a) the share return plus the buffer amount of 20% times (b) the downside factor of 1.25, subject to a cap of zero. The share return is (a) the final share price minus the initial share price divided by (b) the initial share price.
If the buffered downside return is negative and not fully offset by a sufficiently positive average share return, investors will lose some or all of their investment. There is no minimum payout on the notes, the filing noted.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Fixed-income buffered securities
|
| Underlying ETF: | iShares MSCI EAFE ETF
|
| Amount: | $4,619,000
|
| Maturity: | March 8, 2021
|
| Coupon: | 1.9%, payable semiannually
|
| Price: | Par
|
| Payout at maturity: | Par plus the average share return plus the buffered downside return
|
| Average share return: | (a) Average share price minus the initial share price divided by (b) the initial share price, subject to a floor of zero
|
| Buffered downside return: (a) Share return plus the buffer amount of 20% times (b) the downside factor of 1.25, subject to a cap of zero
|
| Share return: | (a) Final share price minus the initial share price divided by (b) the initial share price
|
| Initial price: | $60.93
|
| Average share price: | Average of the closing share prices on June 3, 2020, Sept. 3, 2020, Dec. 3, 2020 and March 3, 2021
|
| Final share price: | Closing share price on March 3, 2021
|
| Pricing date: | March 3
|
| Settlement date: | March 8
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | None
|
| Cusip: | 61768CFG7
|
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