By William Gullotti
Buffalo, N.Y., Feb. 6 – Morgan Stanley Finance LLC priced $1.03 million of market-linked securities – autocallable with contingent coupon and contingent downside due Jan. 28, 2027 linked to the stock performance of Apple Inc., Alphabet Inc., and Amazon.com, Inc., 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 interest payment at the rate of 14% per year if each stock closes at or above the coupon barrier level, 70% of the initial share level, on the observation date for that period.
The notes will be called at par plus an interest payment if each stock closes at or above its initial level on any quarterly call observation date after six months.
The payout at maturity will be par plus the final interest payment if each stock finishes at or above its respective downside threshold, 70% of its initial level.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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| Underlying stocks: | Apple Inc., Alphabet Inc., Amazon.com, Inc.
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| Amount: | $1.03 million
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| Maturity: | Jan. 28, 2027
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| Coupon: | 14% annual rate, payable quarterly if each stock closes at or above coupon barrier level on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon of each stock finishes at or above its downside threshold; otherwise, 1% loss for every 1% decline of worst performer from its initial level
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| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call observation date after six months
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| Initial levels: | $194.50 for Apple, $148.70 for Alphabet, $156.87 for Amazon
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| Coupon barriers: | $136.15 for Apple, $104.09 for Alphabet, $109.809 for Amazon; 70% of initial levels
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| Downside thresholds: | $136.15 for Apple, $104.09 for Alphabet, $109.809 for Amazon; 70% of initial levels
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| Pricing date: | Jan. 24
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| Settlement date: | Jan. 29
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| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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| Fees: | 2.325%
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| Cusip: | 61771WNM6
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