By Kiku Steinfeld
Chicago, March 2 – Morgan Stanley Finance LLC priced $1.19 million of contingent income autocallable securities due Aug. 31, 2021 linked to the worst performing of the SPDR S&P Biotech exchange-traded fund, the Financial Select Sector SPDR fund and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes pay a contingent coupon at an annual rate of 7% if each fund closes at or above its downside threshold level, 70% of its initial share price, on the determination date for that quarter.
The notes will be automatically called at par if each fund closes at or above 96% of its initial share price on any quarterly determination date.
The payout at maturity will be par unless the final share price of any ETF is less than its downside threshold level, in which case investors will be fully exposed to the decline of the worst-performing ETF.
Morgan Stanley & Co. LLC is the agent.
| 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 ETFs: | SPDR S&P Biotech ETF (Symbol: XBI), Financial Select Sector SPDR fund (Symbol: XLF) and Technology Select Sector SPDR fund (Symbol: XLK)
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| Amount: | $1,191,000
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| Maturity: | Aug. 31, 2021
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| Coupon: | 7%, payable quarterly if each fund closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each fund finishes at or above downside threshold level, par; if final level of any fund is less than downside threshold level, full exposure to decline of worst-performing fund
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| Call: | Automatically at par if each fund closes at or above 96% of initial share price on any quarterly determination date
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| Initial share prices: | $91.53 for biotech fund, $28.55 for financial fund and $92.70 for technology fund
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| Call levels: | $87.869 for biotech fund, $27.408 for financial fund and $88.992 for technology fund; 96% of initial share prices
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| Downside thresholds: | $64.071 for biotech fund, $19.98 for financial fund and $64.89 for technology fund; 70% of initial share prices
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| Pricing date: | Feb. 26
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| Settlement date: | March. 2
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.875%
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| Cusip: | 61770FMJ2
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