By Sarah Lizee
Olympia, Wash., Dec. 11 – Morgan Stanley Finance LLC priced $1.53 million of contingent income autocallable securities due Dec. 1, 2021 linked to the worst performing of the common stocks of Northrop Grumman Corp., Nvidia Corp. and Neurocrine Biosciences, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 60% of its initial share price, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annualized rate of 18%.
After six months, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly determination date.
If each stock’s final share price is greater than or equal to its 60% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
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: | Northrop Grumman Corp., Nvidia Corp. and Neurocrine Biosciences, Inc.
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| Amount: | $1,525,000
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| Maturity: | Dec. 1, 2021
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| Coupon: | 18% per year, payable quarterly if each stock closes at or above coupon threshold level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | After six months, at par plus contingent coupon if each stock closes at or above its initial level on any quarterly determination date
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| Initial share prices: | $349.75 for Northrop, $221.21 for Nvidia and $114.98 for Neurocrine
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| Coupon barrier levels: | $209.85 for Northrop, $132.726 for Nvidia and $68.988 for Neurocrine; 60% of initial levels
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| Downside thresholds: | $209.85 for Northrop, $132.726 for Nvidia and $68.988 for Neurocrine; 60% of initial levels
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| Pricing date: | Nov. 25
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| Settlement date: | Nov. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61769HU60
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