By Angela McDaniels
Tacoma, Wash., June 27 – Morgan Stanley Finance LLC priced $3.18 million of contingent income autocallable securities due June 29, 2022 linked to the lesser performing of the common stocks of Masco Corp. and Lowe’s Cos., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above its downside threshold level, 65% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 12.7%.
Beginning Dec. 24, 2019, the notes will be called at par of $10 plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date.
If each stock finishes at or above its 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 stock’s final share price is less than its initial share price.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Masco Corp. (Symbol: MAS) and Lowe’s Cos., Inc. (Symbol: LOW)
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| Amount: | $3,175,000
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| Maturity: | June 29, 2022
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| Coupon: | 12.7% per year, payable quarterly if each stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
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| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that lesser-performing stocks’ final share price is less than initial share price
|
| Call: | Beginning Dec. 24, 2019, at par plus contingent coupon if each stock closes at or above initial share price on any quarterly determination date other than final determination date
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| Initial share prices: | $38.85 for Masco and $99.02 for Lowe’s
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| Downside thresholds: | $25.253 for Masco and $64.363 for Lowe’s, or 65% of initial share prices
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| Pricing date: | June 24
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| Settlement date: | June 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.35%
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| Cusip: | 61769HHT5
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