By Sarah Lizee
Olympia, Wash., Aug. 18 – Morgan Stanley Finance LLC priced $5.12 million of contingent income autocallable securities due Aug. 17, 2021 linked to the common stock of Spotify Technology SA, according to a 424B2 filing with the Securities and Exchange Commission.
If the shares close at or above the coupon threshold level, 60% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 12.8%.
The notes will be called at par plus the contingent coupon if the shares close at or above the call threshold, 100% of the stock’s initial price, on any quarterly determination date other than the final one.
If the final share price is greater than or equal to the downside threshold level, 60% of the initial share price, the payout at maturity will be par. 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. Morgan Stanley Wealth Management is a dealer.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Spotify Technology SA
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| Amount: | $5,118,500
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| Maturity: | Aug. 17, 2021
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| Coupon: | 12.8% per year, payable quarterly if shares close at or above coupon threshold level on determination date for that quarter
|
| 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 contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus the contingent coupon if the shares close at or above the call threshold, 100% of initial price, on any quarterly determination date other than the final one
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| Initial share price: | $253.29
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| Coupon threshold: | $151.974; 60% of initial share price
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| Downside threshold: | $151.974; 60% of initial share price
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| Pricing date: | Aug. 12
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| Settlement date: | Aug. 17
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 61771D134
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