By Wendy Van Sickle
Columbus, Ohio, Oct. 7 – Morgan Stanley Finance LLC priced $1.89 million of contingent income autocallable securities due April 6, 2022 linked to the common stock of Penn National Gaming, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annual rate of 22% if the stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if the stock closes above 80% of its initial level on any monthly redemption date after three months.
The payout at maturity will be par unless the stock finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is a dealer.
| 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: | Penn National Gaming, Inc.
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| Amount: | $1,887,000
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| Maturity: | April 6, 2022
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| Coupon: | 22% per year, payable each month that stock closes at or above coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par; otherwise, full exposure to stock’s decline
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| Call: | Par plus the contingent coupon if the stock closes above 80% of its initial level on any monthly redemption date after three months
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| Initial share price: | $74.07
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| Coupon threshold: | $44.442, 60% of initial share price
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| Downside threshold: | $37.035, 50% of initial share price
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| Pricing date: | Oct. 1
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| Settlement date: | Oct. 6
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management LLC
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| Fees: | 1.875%
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| Cusip: | 61771B5B6
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