By Susanna Moon
Chicago, Oct. 27 – Morgan Stanley Finance LLC priced $1.14 million of contingent income autocallable securities due Oct. 29, 2020 linked to worse performing of the common stocks of Celgene Corp. and Amgen Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.28% if each stock closes at or above the 65% downside threshold on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above the initial level on any determination date after six months.
The payout at maturity will be par plus the contingent coupon unless either stock finishes below its 65% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing stock.
The notes are guaranteed by Morgan Stanley.
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: | Celgene Corp. (Symbol: CELG) and Amgen Inc. (Symbol: AMGN)
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| Amount: | $1,143,000
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| Maturity: | Oct. 29, 2020
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| Coupon: | 8.28% per year, payable quarterly if each stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par plus contingent coupon; otherwise, 1% loss per 1% decline of worse performing stock
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| Call: | At par plus contingent coupon if stock closes at or above initial level on any quarterly determination date beginning April 27, 2018
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| Initial share price: | $120.34 for Celgene, $180.37 for Amgen
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| Downside threshold: | $78.221 for Celgene, $117.241 for Amgen; 65% of initial share price
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| Pricing date: | Oct. 24
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| Settlement date: | Oct. 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61768CSA6
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