By Marisa Wong
Morgantown, W.Va., Feb. 27 – Morgan Stanley Finance LLC priced $700,000 of phoenix autocallable notes due March 11, 2020 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
If Alibaba shares close at or above the downside threshold, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon plus any previously unpaid contingent coupons. If Alibaba shares close below the downside threshold on a quarterly determination date, no coupon will be paid that quarter. The contingent coupon rate is 11.75% per year.
The notes will be automatically called at par if Alibaba shares close at or above the initial share price on any of the first three quarterly determination dates.
The payout at maturity will be par unless Alibaba shares finish below the downside threshold, in which case investors will lose 1% for every 1% that the stock declines from its initial price.
Morgan Stanley & Co. LLC is the agent. JPMorgan Chase Bank NA and J.P. Morgan Securities LLC are placement agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Phoenix autocallable notes
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| Underlying ADSs: | Alibaba Group Holding Ltd. (Symbol: BABA)
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| Amount: | $700,000
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| Maturity: | March 11, 2020
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| Coupon: | If Alibaba shares close at or above the downside threshold on a quarterly determination date, contingent coupon at 11.75% per year plus any previously unpaid contingent coupons
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| Price: | Par
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| Payout at maturity: | Par unless Alibaba shares finish below the downside threshold, in which case 1% loss for every 1% that the stock declines from its initial price
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| Call: | Automatically at par if Alibaba shares close at or above the initial share price on any of the first three quarterly determination dates
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| Initial price: | $176.92
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| Downside threshold: | $123.844, 70% of initial price
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| Pricing date: | Feb. 22
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| Settlement date: | Feb. 27
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| Agent: | Morgan Stanley & Co. LLC with JPMorgan Chase Bank NA and J.P. Morgan Securities LLC as placement agents
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| Fees: | 1%
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| Cusip: | 61768DT47
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