By Wendy Van Sickle
Columbus, Ohio, Aug. 2 – Morgan Stanley Finance LLC priced $850,000 of contingent income autocallable securities due July 28, 2022 linked to the least performing of the class B common stock of United Parcel Service, Inc. and the common stock of FedEx Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10% per year if each stock closes at or above its downside threshold, 65% of its initial share price, on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date after one year.
The payout at maturity will be par unless any stock finishes below its downside threshold, in which case investors will be exposed to the decline of the least-performing stock from its initial share price.
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: | United Parcel Service, Inc. and FedEx Corp.
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| Amount: | $850,000
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| Maturity: | July 28, 2022
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| Coupon: | 10% per year, payable quarterly if each 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: | Par unless any stock finishes below downside threshold, in which case exposure to decline of least-performing stock from initial share price
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| Call: | Automatically at par if each stock closes at or above initial share price on any quarterly determination date after one year
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| Initial share prices: | $118.25 for UPS, $175.87 for FedEx
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| Downside thresholds: | $76.863 for UPS, $114.316 for FedEx; 65% of initial share prices
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| Pricing date: | July 25
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| Settlement date: | July 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.81%
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| Cusip: | 61769HLY9
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