By Angela McDaniels
Tacoma, Wash., Oct. 25 – Morgan Stanley Finance LLC priced $2.41 million of contingent income autocallable securities due April 26, 2017 linked to the common stock of American Airlines Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If American Airlines shares close at or above the downside threshold level, 75% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 10.85%.
The notes will be called at par of $10 plus the contingent coupon if American Airlines shares close at or above the initial share price on any monthly determination date other than the final 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. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | American Airlines Group Inc. (Symbol: AAL)
|
| Amount: | $2,411,360
|
| Maturity: | April 26, 2017
|
| Coupon: | 10.85% per year, payable monthly if American Airlines shares close at or above downside threshold level on determination date for that month
|
| Price: | Par of $10.00
|
| 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 contingent coupon if American Airlines shares close at or above initial share price on any monthly determination date other than final determination date
|
| Initial share price: | $39.90
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| Downside threshold: | $29.925, 75% of initial share price
|
| Pricing date: | Oct. 21
|
| Settlement date: | Oct. 26
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.25%
|
| Cusip: | 61766F342
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