By Wendy Van Sickle
Columbus, Ohio, April 15 – Morgan Stanley Finance LLC priced $2.67 million of contingent income autocallable securities due April 14, 2022 linked to the lesser performing of the common stocks of Goldman Sachs Group, Inc., JPMorgan Chase & Co., Citigroup Inc. and E*Trade Financial Corp., 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 monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 9%.
Beginning Oct. 11, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any monthly determination date other than the final determination date.
If each stock’s final share price is greater than or equal to its 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: | Goldman Sachs Group, Inc., JPMorgan Chase & Co., Citigroup Inc. and E*Trade Financial Corp.
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| Amount: | $2.67 million
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| Maturity: | April 14, 2022
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| Coupon: | 9% per year, payable monthly if each stock closes at or above downside threshold level on determination date for that month
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| 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: | Beginning Oct. 11, at par plus contingent coupon if each stock closes at or above initial share price on any quarterly determination date other than final determination date
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| Initial share prices: | $202.83 for Goldman Sachs, $106.23 for JPMorgan, $48.28 for E*Trade and $65.91 for Citigroup
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| Downside thresholds: | $121.698 for Goldman Sachs, $63.738 for JPMorgan, $29.968 for E*Trade and $39.546 for Citigroup; 60% of initial share price
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| Pricing date: | April 11
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| Settlement date: | April 16
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768D6B6
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