By Susanna Moon
Chicago, Sept. 14 – Morgan Stanley Finance LLC priced $1.8 million of contingent income autocallable securities due Sept. 11, 2020 linked to Las Vegas Sands Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.6% if the stock closes at or above the downside threshold, 75% of the initial share price, on a date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial share price on any of the first 11 determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 75% downside threshold, in which case investors will be fully exposed to any losses.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| 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 stock: | Las Vegas Sands Corp. (Symbol: LVS)
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| Amount: | $1,798,000
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| Maturity: | Sept. 11, 2020
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| Coupon: | 10.6% per year, payable quarterly if shares close at or above the downside threshold on quarterly determination date
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| Price: | Par of $10
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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| Call: | At par plus contingent coupon if shares close at or above initial share price on any of the first 11 determination dates
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| Initial price: | $63.12
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| Downside threshold: | $47.34, 75% of initial price
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 15
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| Agent: | Morgan Stanley & Co. LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 2%
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| Cusip: | 61766X871
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