By Taylor Fox
New York, Nov. 16 – Morgan Stanley Finance LLC priced $550,000 of contingent income autocallable securities due Oct. 31, 2022 linked to the worst performing of the common stocks of Walt Disney Co. and Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes pay a contingent quarterly coupon at an annual rate of 11.5% if the shares of all stocks close at or above their 70% downside threshold on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above 90% of its initial price on any quarterly determination date other than the final one.
The payout at maturity will be par unless any stock finishes below its 70% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price for the worst performer.
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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| Underlying stocks: | Walt Disney Co. and Amazon.com, Inc.
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| Amount: | $550,000
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| Maturity: | Oct. 31, 2022
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| Coupon: | 11.5% per year, payable quarterly if least-performing stock closes at or above downside threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If least-performing stock’s final share price is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that least-performing stock’s final share price is less than initial share price
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| Call: | At par plus contingent coupon if each stock closes at or above 90% of its initial share price on any quarterly determination date other than the final one
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| Initial share prices: | $124.06 for Disney and $3,207.04 for Amazon
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| Downside thresholds: | $86.842 for Disney and $2,244.928 for Amazon, 70% of initial level
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| Pricing date: | Oct. 26
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| Settlement date: | Oct. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3%
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| Cusip: | 61771EEH7
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