By William Gullotti
Buffalo, N.Y., Sept. 2 – Morgan Stanley Finance LLC priced $2.92 million of phoenix autocallable securities due Aug. 31, 2023 linked to Facebook, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon plus any previously unpaid coupons at an annualized rate of 15.5% if the stock closes at or above the 8% downside threshold on a quarterly observation date.
If the shares close at or above the initial price on any quarterly determination date, the notes will be called at par plus the contingent coupon and any previously unpaid coupons.
If the notes are not called and the shares finish at or above the downside threshold, the payout at maturity will be par plus the final contingent coupon and any previously unpaid coupons. Otherwise, investors will be fully exposed to the stock’s decline from its initial level.
Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as the placement agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Phoenix autocallable securities
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| Underlying stock: | Facebook, Inc.
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| Amount: | $2,915,000
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| Maturity: | Aug. 31, 2023
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| Coupon: | 8% annualized, payable for each quarter that stock closes at or above downside threshold level on any quarterly determination date; coupon payments will include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus final coupon plus any previously unpaid coupons if stock finishes at or above downside threshold; otherwise full exposure to any losses
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| Call: | At par plus contingent coupon and any previously unpaid coupons if stock closes at or above initial share price on any quarterly determination date
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| Initial share price: | $268.184
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| Downside threshold: | $120.653; 73.6% of initial price
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| Pricing date: | July 30
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| Settlement date: | Aug. 4
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| Agent: | Morgan Stanley & Co. LLC with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents
|
| Fees: | 1.5%
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| Cusip: | 61773FUW1
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