By Wendy Van Sickle
Columbus, Ohio, July 25 – Morgan Stanley Finance LLC priced $2.5 million of contingent income autocallable securities due July 16, 2021 linked to the worse performing of the common stocks of Ulta Beauty, Inc. and Costco Wholesale Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.45% if each underlying stock closes at or above the 60% downside threshold on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any determination date after six months.
The payout at maturity will be par unless either stock finishes below its 60% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing stock.
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 stocks: | Costco Wholesale Corp. and Ulta Beauty, Inc.
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| Amount: | $2.5 million
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| Maturity: | July 16, 2021
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| Coupon: | 8.45% annualized, payable each quarter if each stock closes 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 either stock finishes above downside threshold, par; otherwise, full exposure to decline of worst performing stock
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| Call: | At par plus contingent coupon if each stock closes at or above initial level on any determination date after six months
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| Initial share prices: | $216.54 for Costco, $259.87 for Ulta
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| Downside thresholds: | $129.924 for Costco, $155.922 for Ulta, 60% of initial levels
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| Pricing date: | July 13
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| Settlement date: | July 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.35%
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| Cusip: | 61768C7H4
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