By Wendy Van Sickle
Columbus, Ohio, Nov. 28 – Morgan Stanley Finance LLC priced $10.06 million of contingent income autocallable securities due Nov. 25, 2019 linked to the worst performing of the SPDR S&P Bank ETF, the SPDR S&P Biotech ETF and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 15% if each fund closes at or above its 72.83% downside threshold on the determination date that quarter.
The notes will be called at par plus the contingent coupon if each fund closes at or above its initial level on any determination date other than the final date.
The payout at maturity will be par unless any fund finishes below its 72.83% downside threshold, in which case investors will be fully exposed to any losses of the worst performing fund.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| 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 funds: | SPDR S&P Bank ETF, SPDR S&P Biotech ETF and Technology Select Sector SPDR Fund
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| Amount: | $10.06 million
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| Maturity: | Nov. 25, 2019
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| Coupon: | 15% per year, payable quarterly if each fund closes at or above downside threshold on determination date that quarter
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| Price: | Par
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| Payout at maturity: | If each fund finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing fund
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| Call: | At par if each fund closes at or above initial level on any quarterly call date other than final date
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| Initial levels: | $80.87 for Biotech, $45.29 for Bank, $63.59 for Technology
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| Downside thresholds: | $58.898 for Biotech, $32.985 for Bank, $46.313 for Technology, 72.83% of initial levels
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| Pricing date: | Nov. 20
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| Settlement date: | Nov. 24
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 1.75%
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| Cusip: | 61768CUK1
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