By Kiku Steinfeld
Chicago, Feb. 17– Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Feb. 3, 2022 linked to the common stock of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If the shares close at or above the downside threshold level, 50% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment for that quarter plus any previously unpaid contingent coupons at an annualized rate of 11.75%.
The notes will be called at par plus the contingent coupon and any previously unpaid contingent coupons if the shares close at or above the stock’s initial price on any quarterly determination date.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon and any previously unpaid contingent coupons. Otherwise, investors will lose 1% for every 1% that the final share price is less than the 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 stock: | Tesla, Inc.
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| Amount: | $250,000
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| Maturity: | Feb. 3, 2022
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| Coupon: | 11.75% per year plus any previously unpaid contingent coupons, payable quarterly if shares close at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final coupon and any previously unpaid coupons; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | At par plus contingent coupon and any previously unpaid contingent coupons if shares close at or above initial share price on any quarterly determination date
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| Initial share price: | $640.81
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| Downside threshold: | $320.405, 50% of initial share price
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| Pricing date: | Jan. 30
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| Settlement date: | Feb. 4
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61770FDM5
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