By Taylor Fox
New York, Nov. 16 – Morgan Stanley Finance LLC priced $1.29 million of contingent income autocallable securities due April 27, 2022 linked to the common stocks of Lockheed Martin Corp., Goldman Sachs Group, Inc. and UnitedHealth Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 11.5% per year if each stock closes at or above its coupon barrier level, 65% of its initial level, on the observation date that quarter.
The notes will be automatically called at par if each stock closes at or above its initial level on any quarterly redemption date after six months.
If the lowest-performing stock finishes at or above its barrier level, 65% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing stock finishes below its barrier level, investors will be fully exposed to the decline of the lowest-performing stock from its initial level.
The notes are guaranteed by Morgan Stanley.
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: | Lockheed Martin Corp., Goldman Sachs Group, Inc. and UnitedHealth Group Inc.
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| Amount: | $1,290,000
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| Maturity: | April 27, 2022
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| Coupon: | 11.5% per year, payable quarterly if each stock closes at or above coupon barrier level on observation date that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold level, par plus any coupon; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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| Call: | Automatically at par plus coupon on any quarterly redemption date after six months
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| Initial levels: | $368.96 for Lockheed, $205.40 for Goldman and $325.73 for UnitedHealth
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| Coupon barriers: | $239.824 for Lockheed, $133.51 for Goldman and $211.725 for UnitedHealth; 65% of initial levels
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| Downside threshold levels: | $239.824 for Lockheed, $133.51 for Goldman and $211.725 for UnitedHealth; 65% of initial levels
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| Pricing date: | Oct. 22
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| Settlement date: | Oct. 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61771EDX3
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