By Tali Rackner
Minneapolis, April 10 – Morgan Stanley Finance LLC priced $1.5 million of contingent income buffered autocallable securities due April 8, 2021 linked to the common stocks of Facebook, Inc. and Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 9.25% if each stock closes at or above its 60% coupon barrier level on the determination date that month.
The notes are subject to a one-year non-call period. Beginning April 8, 2019, the notes will be called at par if each stock closes at or above its initial price on any monthly observation date.
The payout at maturity will be par unless either stock finishes below its 60% downside threshold, in which case investors will lose 1.6666% for each 1% that the lesser-performing stock declines beyond 40%.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income buffered autocallable securities
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| Underlying indexes: | Facebook, Inc. (Symbol: FB) and Amazon.com, Inc. (Symbol: AMZN)
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| Amount: | $1.5 million
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| Maturity: | April 8, 2021
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| Coupon: | 9.25% annualized, payable monthly if each stock closes at or above downside threshold on determination date for that month
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1.6666% loss for each 1% decline of lesser-performing stock
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| Call: | Non-callable for one year; beginning April 8, 2019, notes will be called at par if each stock closes at or above its initial price on any monthly observation date
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| Initial share prices: | $156.11 for Facebook and $1,392.05 for Amazon
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| Barrier/buffer levels: | $93.666 for Facebook and $835.23 for Amazon; 60% of initial prices
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| Pricing date: | April 4
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| Settlement date: | April 9
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 0.1%
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| Cusip: | 61768CT64
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