By William Gullotti
Buffalo, N.Y., April 26 – Morgan Stanley Finance LLC priced $3.03 million of market-linked securities – autocallable with contingent coupon with memory feature and contingent downside due April 22, 2027 linked to the stock performance of Apple Inc., Advanced Micro Devices, Inc., and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly interest payment at the rate of 17% per year if each stock closes at or above the coupon barrier level, 70% of the initial share level, on the observation date for that period. Previously unpaid interest, if any, will be automatically included whenever interest is paid.
The notes will be called at par plus an interest payment if each stock closes at or above its initial level on any monthly call observation date after six months.
The payout at maturity will be par plus the final interest payment if each stock finishes at or above its coupon barrier.
If the worst performer finishes below its coupon barrier but at or above its downside threshold, 60% of its initial level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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| Underlying stocks: | Apple Inc., Advanced Micro Devices, Inc., JPMorgan Chase & Co.
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| Amount: | $3,031,000
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| Maturity: | April 22, 2027
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| Coupon: | 17% annual rate, payable monthly if each stock closes at or above coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon of each stock finishes at or above its coupon barrier; if worst performer finishes below its coupon barrier but at or above downside threshold, par; otherwise, 1% loss for every 1% decline of worst performer from its initial level
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| Call: | At par plus coupon if each stock closes at or above its initial level on any monthly call observation date after six months
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| Initial levels: | $165.00 for Apple, $146.64 for AMD, $185.80 for JPMorgan
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| Coupon barriers: | $115.50 for Apple, $102.648 for AMD, $130.06 for JPMorgan; 70% of initial levels
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| Downside thresholds: | $99.00 for Apple, $87.984 for AMD, $111.48 for JPMorgan; 60% of initial levels
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| Pricing date: | April 19
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| Settlement date: | April 24
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| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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| Fees: | 2.325%
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| Cusip: | 61776LVC8
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