By Wendy Van Sickle
Columbus, Ohio, Sept. 13 – Morgan Stanley Finance LLC priced $5.53 million of contingent income autocallable securities due Sept. 12, 2019 with step-up redemption threshold linked to Goldman Sachs Group, Inc. shares, according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8.05% if Goldman shares close at or above their downside threshold, 80% of their initial level, on the determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if Goldman shares close above its redemption level on any of the first 11 determination dates.
The redemption threshold will be 105% of the initial share price for the first four determination dates, stepping up to 110% of the initial share price for the next four determination dates and to 115% of the initial share price for the final three determination dates.
The payout at maturity will be par plus the final contingent coupon, unless Goldman shares finish below the 80% downside threshold, in which case investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Wealth Management is a distributor.
| 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: | Goldman Sachs Group, Inc.
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| Amount: | $5,533,800
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| Maturity: | Sept. 12, 2019
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| Coupon: | 8.05% per year, payable quarterly if the shares close at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10.00
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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
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| Call: | At par plus contingent coupon if Goldman shares close at or above redemption threshold on any of the first 11 determination dates
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| Redemption threshold: | 105% of initial share price for first four determination dates, stepping up to 110% of initial share price for next four determination dates and to 115% of initial share price for final three determination dates
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| Initial share price: | $168.57
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| Downside threshold: | $134.856, 80% of initial share price
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| Pricing date: | Sept. 9
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| Settlement date: | Sept. 14
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61766F185
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