By Kiku Steinfeld
Chicago, Aug. 23 – Morgan Stanley Finance LLC priced $3.2 million of contingent income autocallable securities due June 20, 2024 linked to the shares of Citigroup Inc. and Wells Fargo & Co., according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8.58% if each underlying stock closes at or above its 70% coupon barrier on the corresponding observation date.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any quarterly review date after six months.
The payout at maturity will be par unless any underlying stock finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Issue: | Contingent income autocallable securities
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| Guarantor: | Morgan Stanley
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| Underlying stocks: | Citigroup Inc. and Wells Fargo & Co.
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| Amount: | $3.2 million
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| Maturity: | June 20, 2024
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| Coupon: | 8.58% annualized, payable quarterly if each stock closes at or above coupon barrier on corresponding review date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing stock
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| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date after six months
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| Initial levels: | $73.82 for Citi, $45.46 for Wells
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| Coupon barrier levels: | $51.674 for Citi, $31.822 for Wells; 70% of initial levels
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| Downside thresholds: | $51.674 for Citi, $31.822 for Wells, 70% of initial levels
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| Pricing date: | June 15
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| Settlement date: | June 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61771V5A4
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