By Wendy Van Sickle
Columbus, Ohio, Sept. 8 – Morgan Stanley Finance LLC priced $3.53 million of contingent income autocallable securities due Sept. 4, 2020 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be 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%.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial share price on any quarterly determination date other than the final determination date.
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. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Facebook, Inc.
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| Amount: | $3,533,300
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| Maturity: | Sept. 4, 2020
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| Coupon: | 8% per year, payable quarterly if shares close at or above the downside threshold on quarterly determination date
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| Price: | Par of $10
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| Payout at maturity: | If final share price is greater than or equal to downside threshold, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | At par plus contingent coupon if shares close at or above initial share price on any quarterly determination date other than final determination date
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| Initial price: | $172.02
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| Downside threshold: | $137.616, 80% of initial price
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| Pricing date: | Sept. 1
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| Settlement date: | Sept. 7
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| Agent: | Morgan Stanley & Co. LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 2.5%
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| Cusip: | 61766X756
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