By Susanna Moon
Chicago, Jan. 3 – Morgan Stanley Finance LLC priced $5.08 million of contingent income autocallable securities due Dec. 27, 2019 linked to Caterpillar Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 9.01% if Caterpillar shares close at or above the downside threshold level, 70% of the initial share price, on a determination date for that quarter.
The notes will be called at par plus the contingent coupon if Caterpillar shares close at or above the initial share price on any of the first 11 determination dates.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarntor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Caterpillar Inc. (NYSE: CAT)
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| Amount: | $5,078,740
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| Maturity: | Dec. 27, 2019
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| Coupon: | 9.01% per year, payable quarterly if Caterpillar shares close at or above downside threshold on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If stock finishes below downside threshold, par; otherwise, full exposure to any losses
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| Call: | At par plus contingent coupon if Caterpillar shares close at or above initial share price on any of the first 11 determination dates
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| Initial level: | $94.32
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| Downside threshold: | $66.024, 70% of initial level
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| Pricing date: | Dec. 23
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| Settlement date: | Dec. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61766F771
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