Published on 3/21/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.4 million contingent income autocallables linked to Kraft, Delta, Netflix
By Angela McDaniels
Tacoma, Wash., March 21 – Morgan Stanley Finance LLC priced $1.4 million of contingent income autocallable securities due March 23, 2023 linked to the least-performing of the common stocks of Kraft Heinz Co., Delta Air Lines, Inc. and Netflix, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its coupon threshold level, 60% of its initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 17.25%.
Beginning Dec. 19, 2019, the notes will be called at par if each stock closes at or above its initial share price on any monthly determination date.
The payout at maturity will be par unless any stock finishes below its downside threshold level, 50% of its initial share price, in which case investors will lose 1% for every 1% that the least-performing stock declines from its initial share price.
Morgan Stanley & Co. LLC is the agent.
| 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 stocks: | Kraft Heinz Co. (Symbol: KHC), Delta Air Lines, Inc. (Symbol: DAL) and Netflix, Inc. (Symbol: NFLX)
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| Amount: | $1.4 million
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| Maturity: | March 23, 2023
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| Coupon: | 17.25% per year, payable monthly if each stock closes at or above coupon threshold level on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below downside threshold level, in which case 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | Beginning Dec. 19, 2019, automatically at par if each stock closes at or above initial share price on any monthly determination date
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| Initial share prices: | $32.13 for Kraft Heinz, $50.96 for Delta and $358.78 for Netflix
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| Coupon thresholds: | $19.278 for Kraft Heinz, $30.576 for Delta and $215.268 for Netflix; 60% of initial share prices
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| Downside thresholds: | $16.065 for Kraft Heinz, $25.48 for Delta and $179.39 for Netflix; 50% of initial share price
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| Pricing date: | March 19
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| Settlement date: | March 22
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61768D3J2
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