By William Gullotti
Buffalo, N.Y., July 5 – Morgan Stanley Finance LLC priced $1.36 million of market-linked securities – autocallable with contingent coupon with memory feature and contingent downside due June 27, 2024 linked to the stock performance of Tesla, Inc., 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 interest payment at the rate of 18.8% per year if the stock closes at or above the coupon barrier level, 70% of the initial share level, on the observation date for that period. Previously unpaid interest, if any, will be automatically included whenever interest is paid.
The notes will be called at par plus an interest payment if the stock closes at or above the initial level on any monthly call observation date after six months.
The payout at maturity will be par plus the final interest payment if the stock finishes at or above its respective downside threshold, 70% of its initial level. Otherwise, investors will be fully exposed to the decline of the stock from its initial level.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
|
| Underlying stock: | Tesla, Inc.
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| Amount: | $1,362,000
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| Maturity: | June 27, 2024
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| Coupon: | 18.8% annual rate, payable monthly if the stock closes at or above coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon of the stock finishes at or above its downside threshold; otherwise, 1% loss for every 1% decline of stock from its initial level
|
| Call: | At par plus coupon if the stock closes at or above its initial level on any monthly call observation date after six months
|
| Initial level: | $256.24
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| Coupon barrier: | $179.368; 70% of initial level
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| Downside threshold: | $179.368; 70% of initial level
|
| Pricing date: | June 28
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| Settlement date: | July 3
|
| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Fees: | 1.325%
|
| Cusip: | 61775HAF4
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