By Wendy Van Sickle
Columbus, Ohio, Dec. 10 – Morgan Stanley Finance LLC priced $1.55 million of contingent income autocallable securities due Nov. 29, 2023 linked to the worst performing of the stocks of Pfizer Inc., Lowe's Cos., Inc. and Lennar Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes pay a contingent quarterly coupon at an annual rate of 11% if the shares of all stocks close at or above their 55% downside threshold levels on the observation date for that period.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any quarterly determination date other than the final one, after six months.
The payout at maturity will be par plus any coupons due unless any stock finishes below its 55% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price for the worst performer.
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: | Pfizer Inc., Lowe's Cos., Inc. and Lennar Corp.
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Amount: | $1.55 million
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Maturity: | Nov. 29, 2023
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Coupon: | 11% per year, payable quarterly if least-performing stock closes at or above 55% coupon barrier on observation date for that period; previously unpaid coupons will also be paid
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Price: | Par of $10
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Payout at maturity: | If least-performing stock’s final share price is greater than or equal to downside threshold level, par plus any coupon due; otherwise, 1% loss for every 1% that least-performing stock’s final share price is less than initial share price
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Call: | At par plus contingent coupon if each stock closes at or above initial share price on any quarterly determination date other than the final one, after six months
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Initial share prices: | $36.60 for Pfizer, $154.96 for Lowe's and $76.53 for Lennar
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Downside thresholds: | $20.13 for Pfizer, $85.228 for Lowe's and $42.092 for Lennar, 55% of initial level
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Pricing date: | Nov. 24
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Settlement date: | Nov. 27
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.5%
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Cusip: | 61771EJE9
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