By Wendy Van Sickle
Columbus, Ohio, Feb. 18 – Morgan Stanley Finance LLC priced $3.18 million of contingent income autocallable securities due Aug. 10 2022 linked to the common stock of Enphase Energy, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annual rate of 22.5% if the stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if the stock closes above 80% of its initial level on any monthly redemption date after three months.
The payout at maturity will be par plus any coupon due unless the stock finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Enphase Energy, Inc.
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| Amount: | $3,176,000
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| Maturity: | Aug. 10, 2022
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| Coupon: | 22.5% per year, payable each month that stock closes at or above coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus any coupon; otherwise, full exposure to stock’s decline
|
| Call: | Par plus the contingent coupon if the stock closes above 80% of its initial level on any monthly redemption date after three months
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| Initial share price: | $193.20
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| Call threshold: | $154.56, 80% of initial share price
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| Coupon threshold level: | $115.92, 60% of initial share price
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| Downside threshold level: | $96.60, 50% of initial share price
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| Pricing date: | Feb. 5
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| Settlement date: | Feb. 10
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
|
| Cusip: | 61771EY69
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