By Wendy Van Sickle
Columbus, Ohio, May 2 – Morgan Stanley Finance LLC priced $26.99 million of contingent income autocallable securities due May 1, 2020 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 9.7% if the shares close at or above the 80% downside threshold on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the shares close at or above their initial level on any of the first 11 determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the downside threshold, in which case investors will lose 1% for each 1% decline.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Bank of America Corp.
|
| Amount: | $26,990,400
|
| Maturity: | May 1, 2020
|
| Coupon: | 9.7% per year, payable quarterly if shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if shares close at or above initial level on any of first 11 determination dates
|
| Initial share price: | $23.34
|
| Downside threshold: | $18.672, 80% of initial share price
|
| Pricing date: | April 28
|
| Settlement date: | May 3
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61766W329
|
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