By Wendy Van Sickle
Columbus, Ohio, Jan. 26 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Jan. 26, 2027 linked to the worse performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Interest is payable quarterly. The notes will pay a fixed coupon at a rate of 9.85% per year for the first two years. After that, the notes will pay a contingent coupon at a rate of 9.85% per year for each quarter that each index closes at or above its initial level on the observation date for that quarter, plus any previously unpaid contingent quarterly coupons.
After an initial two-year non-call period, the notes will be called at par if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless either index finishes below its 50% downside threshold level, in which case investors will be fully exposed to the decline of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
| 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 indexes: | S&P 500 and Euro Stoxx 50
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| Amount: | $1 million
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| Maturity: | Jan. 26, 2027
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| Coupon: | 9.85% per year for first two years, payable quarterly; then 9.85% for each quarter each index closes at or above in initial level on observation date for quarter, plus any previously unpaid contingent quarterly coupons
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| Price: | Par
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| Payout at maturity: | Par unless either index finishes below 50% downside threshold, in which case full exposure to any losses of the worse performing index
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| Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly determination date
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| Initial levels: | 3,273.04 for Stoxx and 2,265.20 for S&P
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| Downside thresholds: | 1,636.52 for Stoxx and 1,132.60 for S&P; 50% of initial levels
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| Pricing date: | Jan. 23
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| Settlement date: | Jan. 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.35%
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| Cusip: | 61768CEF0
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