By William Gullotti
Buffalo, N.Y., Feb. 9 – Morgan Stanley Finance LLC priced $5.48 million of trigger autocallable contingent yield notes due Feb. 7, 2025 linked to the common stock of Costco Wholesale Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at the rate of 7% per year if the shares close at or above the coupon barrier, 73.2% of the initial share price, on the relevant observation date.
The notes will be automatically called at par of $10 plus coupon if the shares close at or above the initial share price on any quarterly observation date after six months.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 73.2% of the initial share price, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | Costco Wholesale Corp.
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| Amount: | $5,478,000
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| Maturity: | Feb. 7, 2025
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| Contingent coupon: | 7%, payable quarterly if stock closes at or above coupon barrier level on the corresponding observation date
|
| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon unless stock finishes below downside threshold level, in which case 1% loss for each 1% decline from initial price
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| Call: | Automatically at par plus coupon if stock closes at or above initial level on any quarterly observation date after six months
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| Initial price: | $519.77
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| Coupon barrier/threshold: | $380.47; 73.2% of initial price
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| Pricing date: | Feb. 4
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| Settlement date: | Feb. 9
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 2%
|
| Cusip: | 61773U472
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