By Wendy Van Sickle
Columbus, Ohio, Aug. 20 – Morgan Stanley Finance LLC priced $1 million of callable contingent income buffered securities due Aug. 18, 2022 linked to the least performing of the SPDR S&P Regional Banking ETF and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 10% per year if each asset closes at or above its coupon barrier level, 80% of its initial level, on the observation date that month.
If each asset finishes at or above its buffer level, 80% of its initial level, the payout at maturity will be par plus the final coupon.
If any asset finishes below its downside threshold, investors will lose 1.25% for every 1% decline of the lesser performing asset beyond 20%.
After one year, the notes will be callable at par on any quarterly call date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income buffered securities
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| Underlying assets: | S&P 500 and SPDR S&P Regional Banking ETF
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| Amount: | $1 million
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| Maturity: | Aug. 18, 2022
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| Coupon: | 10% per year, payable monthly if each asset closes at or above coupon barrier level on observation date that month
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| Price: | Par
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| Payout at maturity: | Par if each asset finishes at or above downside threshold; if either asset finishes below buffer level, investors will lose 1.25% for every 1% decline of the lesser performing asset beyond 20%
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| Call option: | After one year, at par on any quarterly call date
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| Initial levels: | 2,840.60 for S&P, $49.02 for ETF
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| Coupon barrier/buffers: | 2,272.48 for S&P, $39.216 for ETF; 80% of initial levels
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| Pricing date: | Aug. 15
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| Settlement date: | Aug. 20
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.1%
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| Cusip: | 61769HQY4
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