By Susanna Moon
Chicago, May 19 – Morgan Stanley Finance LLC priced $4.46 million of contingent income autocallable securities due May 15, 2020 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly payment at an annualized rate of 8% if the stock closes at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the redemption threshold on any determination date. The redemption threshold will be 105% of the initial level on the first four determination dates, 110% of the initial level on the next four determination dates and 115% on final three determination dates.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
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: | Apple Inc. (Symbol: AAPL)
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| Amount: | $4,461,950
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| Maturity: | May 15, 2020
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| Coupon: | 8% per year, payable quarterly if shares close at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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| Call: | At par plus contingent coupon if shares close at or above redemption threshold on any of the first 11 determination dates
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| Redemption thresholds: | 105% of initial level on first four determination dates; 110% on next four determination dates: 115% on final three determination dates
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| Initial share price: | $156.10
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| Downside threshold: | $124.88, 80% of initial share price
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| Pricing date: | May 12
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| Settlement date: | May 17
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61766W477
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