By Tali Rackner
Minneapolis, Feb. 14 – Morgan Stanley Finance LLC priced $6.38 million of contingent income autocallable securities due Feb. 14, 2019 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a quarterly contingent coupon at an annual rate of 12.15% if the stock closes at or above the 80% downside threshold on the review date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the stock closes at or above its initial price on any of the first three determination dates.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
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.
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| Amount: | $6,375,750
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| Maturity: | Feb. 14, 2019
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| Coupon: | 12.15% per year, payable quarterly if stock closes at or above downside threshold on determination date for that quarter
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| Price: | Par
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| 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 of $10 plus coupon if stock closes at or above initial price on any of first three determination dates
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| Initial share price: | $176.67
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| Downside threshold: | $141.336, 80% of initial share price
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| Pricing date: | Feb. 9
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| Settlement date: | Feb. 14
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
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| Cusip: | 61768M683
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