By Wendy Van Sickle
Columbus, Ohio, Nov. 11 – Morgan Stanley Finance LLC priced $2 million of contingent income autocallable securities due Nov. 8, 2024 linked to the shares of Avis Budget Group, Inc. and Plug Power Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 22.5% if each underlying stock closes at or above its 60% coupon barrier on the corresponding observation date.
The notes will be called at par plus coupon if each stock closes at or above its call level, 80% of initial level, on any monthly review date after three months.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its coupon barrier. If the worst performer finishes below its coupon barrier but at or above 50% downside threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Issue: | Contingent income autocallable securities
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| Guarantor: | Morgan Stanley
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| Underlying stocks: | Avis Budget Group, Inc., Plug Power Inc.
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| Amount: | $2 million
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| Maturity: | Nov. 8, 2024
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| Coupon: | 22.5% annualized, payable monthly if each stock closes at or above coupon barrier on relevant review date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but not below downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing stock from initial level
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| Call: | At par plus coupon if each stock closes at or above its call level on any monthly call date after three months
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| Initial levels: | $297.46 for Avis, $38.37 for Plug
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| Call levels: | $237.968 for Avis, $30.696 for Plug; 80% of initial levels
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| Coupon barrier levels: | $178.476 for Avis, $23.022 for Plug; 60% of initial levels
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| Downside thresholds: | $148.73 for Avis, $19.185 for Plug; 50% of initial levels
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| Pricing date: | Nov. 5
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| Settlement date: | Nov. 10
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61773HDZ9
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