By Susanna Moon
Chicago, May 25 – Morgan Stanley Finance LLC priced $2.19 million of contingent income autocallable securities due May 23, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.75% if the fund closes at or above its 80% coupon barrier on the observation date for that quarter.
The notes will be called at par if the fund closes at or above its initial level on any of the first three determination dates.
The payout at maturity will be par unless the fund finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
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 fund: | SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $2,185,430
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| Maturity: | May 23, 2019
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| Coupon: | 9.75% annualized, payable quarterly if fund closes at or above 80% coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If fund finishes at or above 80% downside threshold, par; otherwise, 1% loss for each 1% decline
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| Call: | At par if fund x closes at or above its initial level on any of the first three determination dates
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| Initial level: | $43.16
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| Downside threshold: | $34.528, 80% of initial level
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| Pricing date: | May 18
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| Settlement date: | May 23
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.25%
|
| Cusip: | 61768Q403
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