By Kiku Steinfeld
Chicago, Dec. 13 – Morgan Stanley Finance LLC priced $1.82 million of contingent income autocallable securities due Aug. 24, 2023 linked to the worst performing of the common stocks of Cigna Corp., Dow Inc. and salesforce.com, inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 55% of its initial share price, on a quarterly observation date, the notes will pay a contingent coupon that period at an annualized rate of 12.35%.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date after six months.
If each stock’s final share price is greater than or equal to its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the least-performing stock declines from its initial share price.
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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| Underliers: | Cigna Corp., Dow Inc. and salesforce.com, inc.
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| Amount: | $1,819,000
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| Maturity: | Aug. 24, 2023
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| Coupon: | 12.35% per year, payable quarterly if each stock closes at or above coupon threshold level on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | At par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date after six months
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| Initial share prices: | $207.53 for Cigna, $60.89 for Dow, $256.13 for salesforce
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| Downside thresholds: | $114.142 for Cigna, $33.490 for Dow, $140.872 for salesforce; 55% of initial share price
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| Pricing date: | Aug. 20
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| Settlement date: | Aug. 25
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0%
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| Cusip: | 61773FQW6
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