By Angela McDaniels
Tacoma, Wash., Sept. 2 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Aug. 29, 2031 linked to the lesser performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The interest rate is 8% for the first year. In years two through 15, the notes will pay a contingent coupon at an annual rate of 8% plus any previously unpaid contingent coupons if each index closes at or above its initial level on the determination date for that quarter.
After three years, the notes will be automatically called at par plus the related quarterly coupon (including any contingent quarterly coupons with respect to any prior observation dates for which a contingent quarterly coupon was not paid) if each index closes at or above its initial level on any quarterly redemption determination date.
If the notes have not been automatically redeemed and each index finishes at or above its initial level, the payout at maturity will be par plus the final contingent coupon and any previously unpaid contingent coupons. If either index finishes below its initial level but each index finishes at or above its downside threshold level, 50% of its initial level, the payout will be par. If the final level of either index is less than its downside threshold level, investors will be fully exposed to the decline of the lesser-performing index.
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 indexes: | Russell 2000 and Euro Stoxx 50
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| Amount: | $500,000
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| Maturity: | Aug. 29, 2031
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| Coupon: | 8% for first year; in years two through 15, notes pay contingent coupon at an annual rate of 8% plus any previously unpaid contingent coupons if each index closes at or above initial level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above initial level, par plus final contingent coupon and any previously unpaid contingent coupons; if either index finishes below initial level but each index finishes at or above downside threshold level, par; otherwise, exposure to decline of lesser-performing index
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| Call: | After three years, notes will be automatically called at par plus related quarterly coupon (including any contingent quarterly coupons with respect to any prior observation dates for which contingent quarterly coupon was not paid) if each index closes at or above initial level on any redemption determination date
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| Initial index levels: | 1,238.031 for Russell 2000 and 3,010.36 for Euro Stoxx 50
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| Downside thresholds: | 619.016 for Russell 2000 and 1,505.18 for Euro Stoxx 50; 50% of initial index levels
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| Pricing date: | Aug. 26
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| Settlement date: | Aug. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61766BBT7
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