By Susanna Moon
Chicago, March 10 – Morgan Stanley Finance LLC priced $3.72 million of contingent income autocallable securities due March 6, 2020 linked to Tesla, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 13.75% if the shares close at or above the 70% downside threshold on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the shares close at or above initial level on any of the first 11 determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 70% downside threshold, in which case investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the underwriter.
| 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 stock: | Tesla, Inc. (Symbol: TSLA)
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| Amount: | $3,721,730
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| Maturity: | March 6, 2020
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| Coupon: | 13.75% per year, payable quarterly if stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | Par unless stock falls by more than 30%, in which case 1% loss per 1% decline
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| Call: | At par plus contingent coupon if stock closes at or above initial level on any of the first 11 determination dates
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| Initial share price: | $251.57
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| Downside threshold: | $176.099, 70% of initial share price
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| Pricing date: | March 3
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| Settlement date: | March 8
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61766V511
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