By Susanna Moon
Chicago, Dec. 21 – Morgan Stanley Finance LLC priced $6.3 million of contingent income autocallable securities due Dec. 23, 2019 linked to the worst performing of the common stocks of Procter & Gamble Co., Coca-Cola Co. and Archer-Daniels-Midland Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 9% if each stock closes at or above its downside threshold, 65% of its initial level, on the determination date for that month.
The notes will be called at par of $10 plus the contingent coupon if each stock closes above its initial level on any monthly review date beginning March 23, 2017.
The payout at maturity will be par plus the final contingent coupon unless any stock finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
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 stocks: | Procter & Gamble Co. (Symbol: PG), Coca-Cola Co. (Symbol: KO) and Archer-Daniels-Midland Co. (Symbol: ADM)
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| Amount: | $6.3 million
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| Maturity: | Dec. 23, 2019
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| Coupon: | 9% per year, payable monthly if each stock close at or above downside threshold level on determination date for that month
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| Price: | Par
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| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price of least performing stock is less than initial share price
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| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any monthly review date beginning March 23, 2017
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| Initial share price: | $84.71 for P&G, $41.67 for Coke, $46.07 for ADM
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| Downside threshold: | $55.062 for P&G, $27.086 for Coke, $29.946 for ADM; 65% of initial share prices
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| Pricing date: | Dec. 19
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| Settlement date: | Dec. 22
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768CCY1
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