By Wendy Van Sickle
Columbus, Ohio, April 17 – Morgan Stanley Finance LLC priced $2.5 million of contingent income autocallable securities due April 13, 2020 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If the shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 8.3%.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the redemption threshold on any determination date. The redemption threshold will be 105% of the initial level on the first four determination dates, 110% of the initial level on the next four determination dates and 115% on final three determination dates.
If the final share price is greater than or equal to the 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 final share price is less than the initial share price.
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: | Facebook, Inc.
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| Amount: | $2,499,910
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| Maturity: | April 13, 2020
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| Coupon: | 8.3% per year, payable quarterly if shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if shares close at or above redemption threshold on any determination date
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| Redemption thresholds: | 105% of initial level on first four determination dates; 110% on next four determination dates: 115% on final three determination dates
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| Initial share price: | $140.78
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| Downside threshold: | $112.624, 80% of initial share price
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| Pricing date: | April 7
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| Settlement date: | April 12
|
| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
|
| Cusip: | 61766W139
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