By Wendy Van Sickle
Columbus, Ohio, Oct. 11 – Morgan Stanley Finance LLC priced $6.09 million contingent income autocallable securities with step-up redemption threshold price feature due Oct. 9, 2020 linked to the common stock of Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
If the shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 8%.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the redemption threshold price on any of the first 11 determination dates. The redemption threshold price will be 105% of the initial stock price for the first four determination dates; it will be 110% of the initial stock price for the fifth through eighth determination dates; and it will be 115% of the initial stock price for the ninth through eleventh determination dates.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities with step-up redemption threshold price feature
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| Underlying stock: | Microsoft Corp.
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| Amount: | $6,093,880
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| Maturity: | Oct. 9, 2020
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| Coupon: | 8% per year, payable quarterly if shares close 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: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | At par plus contingent coupon if shares close at or above call level on any quarterly determination date other than final determination date
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| Call level: | 105% of the initial stock price for the first four determination dates; 110% of the initial stock price for the fifth through eighth determination dates; and 115% of the initial stock price for the ninth through eleventh determination dates
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| Initial share price: | $76.0
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| Downside threshold: | $60.80, 80% of initial share price
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| Pricing date: | Oct. 6
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| Settlement date: | Oct. 12
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61768J540
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