By William Gullotti
Buffalo, N.Y., June 23 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due March 21, 2024 linked to the class A common stock of Block, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 50%, paid monthly, if the underlying stock closes at or above its 70% coupon barrier on the related monthly observation date.
The securities will be called automatically at par plus the coupon if the stock closes at or above its initial price on any monthly valuation date after three months.
If the notes have not been called at the stock finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the stock finishes below its coupon barrier but at or above its 50% downside threshold, the payout will be par. Otherwise, investors will be fully exposed to the stock’s decline from its initial price.
The notes are guaranteed by Morgan Stanley.
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 stock: | Block, Inc.
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| Amount: | $1 million
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| Maturity: | March 21, 2024
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| Coupon: | 50%, paid monthly, if the underlying stock closes at or above its 70% coupon barrier on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | If the stock finishes at or above coupon barrier, par plus final coupon; if the stock finishes below its coupon barrier but not below downside threshold, par; otherwise, full exposure to the stock’s decline from initial price
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| Call: | Automatically at par plus coupon if the stock closes at or above its initial price on any monthly valuation date after three months
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| Initial price: | $57.51
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| Coupon barrier: | $40.257; 70% of initial level
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| Downside threshold: | $28.755; 50% of initial level
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| Pricing date: | June 16
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| Settlement date: | June 22
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61774DRK5
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