By William Gullotti
Buffalo, N.Y., Sept. 22 – Morgan Stanley Finance LLC priced $5.75 million of contingent income autocallable securities due Sept. 19, 2024 linked to the shares of Bank of America Corp. and Citigroup Inc., 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 9.66% 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 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 plus the final coupon 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
|
| Issue: | Contingent income autocallable securities
|
| Guarantor: | Morgan Stanley
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| Underlying stocks: | Bank of America Corp., Citigroup Inc.
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| Amount: | $5,750,000
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| Maturity: | Sept. 19, 2024
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| Coupon: | 9.66% annualized, payable quarterly if each stock closes at or above coupon barrier on relevant review date
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing stock from initial level
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date after six months
|
| Initial levels: | $40.14 for BofA, $70.45 for Citi
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| Coupon barrier levels: | $28.098 for BofA, $49.315 for Citi; 70% of initial levels
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| Downside thresholds: | $28.098 for BofA, $49.315 for Citi; 70% of initial levels
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61773FXR9
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