By Wendy Van Sickle
Columbus, Ohio, April 26 – Morgan Stanley Finance LLC priced $10.95 million of trigger autocallable contingent yield notes due April 27, 2020 linked to the SPDR S&P Regional Banking exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if the fund closes at or above the coupon barrier, 72.2% of the initial price, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 if the fund closes at or above the initial level on any quarterly observation date other than the final one.
If the notes are not called and the final price is greater than or equal to the 72.2% downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final price is less than the initial price.
Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying ETF: | SPDR S&P Regional Banking ETF
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| Amount: | $10,945,300
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| Maturity: | April 27, 2020
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| Contingent coupon: | 8%, payable quarterly if fund closes at or above coupon barrier on quarterly observation date
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| Price: | Par of $10
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| Payout at maturity: | Par unless fund finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
|
| Call: | After six months, automatically at par if fund closes at or above initial level on any quarterly observation date other than the final one
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| Initial price: | $53.64
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| Coupon barrier: | $38.73, 72.2% of initial price
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| Downside threshold: | $38.73, 72.2% of initial price
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| Pricing date: | April 21
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| Settlement date: | April 26
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| Agents: | Morgan Stanley & Co. LLC and UBS Financial Services Inc.
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| Fees: | 2%
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| Cusip: | 61766W295
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