By Sarah Lizee
Olympia, Wash., Oct. 3 – Morgan Stanley Finance LLC priced $6.8 million of contingent income autocallable securities due Sept. 29, 2022 linked to the least performing of the common stocks of Bank of America Corp. and Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9.3% per year if each stock closes at or above its downside threshold level, 60% of its initial level, on the related determination date.
Beginning March 31, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly early redemption 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: | Bank of America Corp. and Citigroup Inc.
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| Amount: | $6,799,000
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| Maturity: | Sept. 29, 2022
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| Coupon: | 9.3% per year, payable quarterly if each stock closes at or above downside threshold on related determination date
|
| 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: | Starting March 31, 2020, automatically at par if each stock closes at or above initial level on any quarterly determination date
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| Initial share prices: | $29.13 for BofA and $69.11 for Citi
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| Downside thresholds: | $17.478 for BofA and $41.466 for Citi, 60% of initial share prices
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61769HVX0
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