By Marisa Wong
Morgantown, W.Va., Jan. 3 – Morgan Stanley Finance LLC priced $5.84 million of contingent income autocallable securities due Dec. 28, 2020 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 at an annual rate of 8.9% if the stock closes at or above its 80% downside threshold on the related quarterly determination date.
The notes will be called at par plus the contingent coupon if the stock closes at or above the applicable redemption threshold on any of the first 11 quarterly determination dates. The redemption threshold will be 105% of the initial price for the first four determination dates, 110% of the initial price for the next four dates and 115% of the initial price for the three dates after that.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Facebook, Inc. (Symbol: FB)
|
| Amount: | $5,835,850
|
| Maturity: | Dec. 28, 2020
|
| Coupon: | 8.9% per year, payable quarterly if stock closes at or above downside threshold on related quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
|
| Call: | At par if stock closes at or above redemption threshold on first 11 determination dates; redemption threshold will be 105% of the initial price for the first four determination dates, 110% of the initial price for the next four dates and 115% of the initial price for the three dates after that
|
| Initial price: | $177.20
|
| Downside threshold: | $141.76, 80% of initial price
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| Pricing date: | Dec. 22
|
| Settlement date: | Dec. 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61768K810
|
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