By Sarah Lizee
Olympia, Wash., June 5 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due June 7, 2022 linked to the worst performing of the common stocks of Marathon Petroleum Corp. and Caterpillar Inc., and the iShares PHLX Semiconductor ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each asset closes at or above its downside threshold level, 50% of its initial share price, on a quarterly observation date, the notes will pay a contingent payment that quarter at an annualized rate of 13%.
After one year the notes will be called at par plus the contingent coupon if each asset closes at or above its initial share price on any quarterly determination date.
If each asset’s final share price is greater than or equal to its 50% 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 lesser-performing asset declines from its initial share price.
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 assets: | Stocks of Marathon Petroleum Corp. and Caterpillar Inc., and the iShares PHLX Semiconductor ETF
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| Amount: | $1 million
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| Maturity: | June 7, 2022
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| Coupon: | 13% per year, payable each quarter if each asset closes at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each asset’s final share price is greater than or equal to its 50% downside threshold level, par plus the final contingent coupon; otherwise, 1% loss for every 1% that the lesser-performing asset declines from its initial share price
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| Call: | After one year, at par plus contingent coupon if each asset closes at or above initial share price on any quarterly determination date
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| Initial share prices: | $47.11 for Marathon, $121.84 for Caterpillar, $179.05 for ETF
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| Downside thresholds: | 50% of initial prices
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| Pricing date: | May 30
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| Settlement date: | June 6
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61769HCZ6
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