By Kiku Steinfeld
Chicago, Feb. 8 – Morgan Stanley Finance LLC priced $467,000 of contingent income autocallable securities due Jan. 31, 2024 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.75% if the stock closes at or above the downside threshold, 60% of the initial share price, on a quarterly observation date.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial share price on any quarterly observation date after six months.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its downside threshold, in which case investors will lose 1% for each 1% decline.
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 stock: | Alibaba Group Holding Ltd. (Symbol: BABA)
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| Amount: | $467,000
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| Maturity: | Jan. 31, 2024
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| Coupon: | 9.75% per year, payable quarterly if shares close at or above the downside threshold on quarterly observation date
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| Price: | Par of $10
|
| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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| Call: | At par plus contingent coupon if shares close at or above initial share price on any quarterly observation date after six months
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| Initial price: | $265.92
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| Downside threshold: | $159.552, 60% of initial price
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61771EZY7
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