By Sarah Lizee
Olympia, Wash., Sept. 18 – Morgan Stanley Finance LLC priced $1.24 million of contingent income autocallable securities due Sept. 16, 2022 linked to the least performing of the common stocks of UnitedHealth Group Inc. and HCA Healthcare, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9% per year if each stock closes at or above its coupon threshold level, 55% of its initial level, on the determination date for that quarter.
Beginning March 13, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly early redemption determination date.
The payout at maturity will be par unless any stock finishes below its downside threshold level, 55% of its initial share price, in which case investors will be exposed to the decline of the least-performing stock from its initial level.
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: | UnitedHealth Group Inc. and HCA Healthcare, Inc.
|
| Amount: | $1,238,000
|
| Maturity: | Sept. 16, 2022
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| Coupon: | 9% per year, payable quarterly if each stock closes at or above coupon threshold on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below downside threshold, in which case exposure to decline of least-performing stock from initial level
|
| Call: | Beginning March 13, 2020, automatically at par if each stock closes at or above initial level on any quarterly determination date
|
| Initial share prices: | $233.61 for UnitedHealth, $129.07 for HCA
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| Downside thresholds: | $128.486 for UnitedHealth, $70.989 for HCA, or 55% of initial share prices
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| Coupon thresholds: | $128.486 for UnitedHealth, $70.989 for HCA, or 55% of initial share prices
|
| Pricing date: | Sept. 13
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| Settlement date: | Sept. 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
|
| Cusip: | 61769HVD4
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