Published on 8/2/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4.46 million contingent income autocallables linked to four stocks
By Wendy Van Sickle
Columbus, Ohio, Aug. 2 – Morgan Stanley Finance LLC priced $4.46 million of contingent income autocallable securities due July 28, 2022 linked to the least performing of the common stock of CVS Health Corp., McDonald’s Corp., Johnson & Johnson and Walt Disney Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 9% per year if each stock closes at or above its downside threshold level, 57.75% of its initial level, on the determination date for that month.
Beginning Jan. 27, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any determination date.
The payout at maturity will be par unless any stock finishes below its downside threshold level, in which case investors will be exposed to the decline of the least-performing stock from its initial level.
The notes are guaranteed by Morgan Stanley.
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: | CVS Health Corp. (Symbol: CVS), McDonald’s Corp. (Symbol: MCD), Johnson & Johnson (Symbol: JNJ) and Walt Disney Co. (Symbol: DIS)
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| Amount: | $4,455,000
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| Maturity: | July 28, 2022
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| Coupon: | 9% per year, payable monthly if each stock closes at or above downside threshold on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below downside threshold, in which case exposure to decline of least-performing stock from initial level
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| Call: | Beginning Jan. 27, 2020, automatically at par if each stock closes at or above initial level on any determination date
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| Initial share prices: | $55.44 for CVS, $214.44 for McDonald’s, $131.12 for Johnson & Johnson and $143.21 for Walt Disney
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| Downside thresholds: | $32.017 for CVS, $123.839 for McDonald’s, $75.722 for Johnson & Johnson and $82.704 for Walt Disney, or 57.75% of initial share prices
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| Pricing date: | July 25
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| Settlement date: | July 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61769HLQ6
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