By Wendy Van Sickle
Columbus, Ohio, Dec. 22 – Morgan Stanley Finance LLC priced $15.77 million of contingent income autocallable securities due Dec. 22, 2022 linked to the least performing of the Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Utilities 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 will pay a contingent coupon at the rate of 9.6% per year if each ETF closes at or above its coupon barrier level, 65% of its initial level, on the determination date for that period.
The notes will be automatically called at par if each ETF closes at or above its initial level on any quarterly call determination date.
The payout at maturity will be par unless any ETF finishes below its 65% downside threshold, in which case investors will lose 1% for every 1% that the least-performing ETF declines from its initial level.
The agent is Morgan Stanley & Co. LLC.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying ETFs: | Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Utilities Select Sector SPDR fund
|
| Amount: | $15,773,500
|
| Maturity: | Dec. 22, 2022
|
| Coupon: | 9.6% per year, payable quarterly if each ETF closes at or above coupon barrier level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | Par unless any ETF finishes below its downside threshold, in which case investors will lose 1% for every 1% that the least-performing ETF declines from its initial level
|
| Call: | Automatically at par if each ETF closes at or above its initial level on any quarterly call determination date
|
| Initial ETF levels: | $39.40 for Energy, $28.49 for Financial and $62.29 for Utilities
|
| Coupon barrier levels: | $25.61 for Energy, $18.519 for Financial and $40.489 for Utilities; 65% of initial levels
|
| Downside thresholds: | $25.61 for Energy, $18.519 for Financial and $40.489 for Utilities; 65% of initial levels
|
| Pricing date: | Dec. 18
|
| Settlement date: | Dec. 23
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61771J107
|
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