By Sarah Lizee
Olympia, Wash., Feb. 24 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Feb. 17, 2022 linked to the worst performing of the common stocks of Goldman Sachs Group, Inc. and Walt Disney Co., 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, 85% of its initial share price, on a semiannual observation date, the notes will pay a contingent coupon that period at an annualized rate of 18.25%.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any semiannual determination date.
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 lesser-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: | Goldman Sachs Group, Inc. and Walt Disney Co.
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| Amount: | $500,000
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| Maturity: | Feb. 17, 2022
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| Coupon: | 18.25% per year, payable semiannually 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 semiannual determination date
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| Initial share prices: | $238.35 for Goldman, $140.90 for Disney
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| Downside thresholds: | $202.598 for Goldman, $119.765 for Disney; 85% of initial share price
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| Pricing date: | Feb. 14
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| Settlement date: | Feb. 20
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.4%
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| Cusip: | 61770FLT1
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