By Wendy Van Sickle
Columbus, Ohio, June 27 – Morgan Stanley Finance LLC priced $13.66 million of contingent income autocallable securities with step-up redemption threshold price feature due June 25, 2021 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8.6% if the stock closes at or above its 80% downside threshold on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its redemption threshold price on any of the first 11 determination dates.
The redemption threshold price will be 105% of the initial price for the first four determination dates, 110% of the initial price on the next four dates and 115% of the initial price on the final three dates.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities with step-up redemption threshold price feature
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| Underlying stock: | Apple Inc.
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| Amount: | $13,656,860
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| Maturity: | June 25, 2021
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| Coupon: | 8.6% annualized, payable quarterly if stock closes at or above downside threshold on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, full exposure to losses
|
| Call: | At par if stock closes at or above redemption threshold price on any of the first 11 determination dates
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| Redemption thresholds: | 105% of the initial price for the first four determination dates, 110% of the initial price on the next four dates and 115% of the initial price on the final three dates
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| Initial share price: | $184.92
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| Downside threshold: | $147.936, 80% of initial level
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| Pricing date: | June 22
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| Settlement date: | June 27
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 2.5%
|
| Cusip: | 61768Q817
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