By Kiku Steinfeld
Chicago, Dec. 20 – Morgan Stanley Finance LLC priced $864,000 of contingent income autocallable securities due Dec. 18, 2024 linked to the lesser performing of the common stocks of Fifth Third Bancorp and U.S. Bancorp, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 65% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 7.37%.
After six months, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date.
If each stock’s final share price is greater than or equal to its 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 lesser-performing stock declines from its 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 stocks: | Fifth Third Bancorp and U.S. Bancorp
|
| Amount: | $864,000
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| Maturity: | Dec. 18, 2024
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| Coupon: | 7.37% per year, payable quarterly if each stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that lesser-performing stock declines from initial share price
|
| Call: | After six months at par plus contingent coupon if each stock closes at or above initial level on any quarterly determination date other than final determination date
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| Initial share prices: | $42.40 for Fifth Third and $56.82 for U.S.
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| Downside thresholds: | $27.56 for Fifth Third and $36.933 for U.S.; 65% of initial levels
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| Pricing date: | Dec. 13
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| Settlement date: | Dec. 16
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61773HRS0
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