By Marisa Wong
Morgantown, W.Va., May 26 – Morgan Stanley Finance LLC priced $3.45 million of contingent income autocallable securities due May 23, 2019 linked to Facebook, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If Facebook stock closes at or above the 75% downside threshold level on a quarterly determination date, the notes will pay a contingent coupon at a rate of 10.05% per year for that quarter.
If Facebook stock closes at or above its initial price on any of the first 11 quarterly determination dates, the notes will be redeemed at par plus the contingent payment.
If Facebook stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment.
Otherwise, investors will be fully exposed to any losses.
The agent is Morgan Stanley & Co. LLC.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Facebook, Inc. (Nasdaq: FB)
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| Amount: | $3,447,500
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| Maturity: | May 23, 2019
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| Contingent payment: | 10.05% per year for quarter if Facebook stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if Facebook stock finishes at or above downside threshold; otherwise full exposure to any losses
|
| Call: | At par plus contingent payment if Facebook stock closes at or above initial price on any of first 11 determination dates
|
| Initial share price: | $117.35
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| Downside threshold: | $88.013, 75% of initial price
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| Pricing date: | May 20
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| Settlement date: | May 25
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61766B440
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