By Susanna Moon
Chicago, Aug. 17 – Morgan Stanley Finance LLC priced $3.41 million of contingent income autocallable securities with step-up redemption feature due Aug. 14, 2020 linked to Facebook, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.15% if the stock closes at or above the 80% downside threshold on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the redemption threshold on any of the first 11 quarterly determination dates.
The redemption threshold will be 105% of the initial share price the first four determination dates, stepping up to 110% of the initial level for the next four quarters and to 115% for the final three quarters.
The payout at maturity will be par plus the final coupon unless the stock finishes below its downside threshold, in which case investors will lose 1% for each 1% decline of the stock.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities with step-up redemption feature
|
| Underlying stock: | Facebook, Inc. (Symbol: FB)
|
| Amount: | $3,414,050
|
| Maturity: | Aug. 14, 2020
|
| Coupon: | 9.15% annualized, payable quarterly if stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is at or above downside threshold, par plus contingent coupon; otherwise, full exposure to decline
|
| Call: | At par plus contingent coupon if stock closes at or above redemption threshold on any of the first 11 quarterly determination dates; threshold is 105% of initial level for first four quarters, 110% of initial level next four quarters, then 115% for final three quarters
|
| Initial share price: | $168.08
|
| Downside threshold: | $134.464, 80% of initial level
|
| Pricing date: | Aug. 11
|
| Settlement date: | Aug. 16
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61766X566
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
