By Wendy Van Sickle
Columbus, Ohio, Jan. 12 – Morgan Stanley Finance LLC priced $4.32 million of contingent income autocallable securities due Dec. 30, 2022 linked to the worse performing of the Financial Select Sector SPDR fund, Energy Select Sector SPDR fund and the Industrial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if each ETF closes at or above its 65% downside threshold on the determination date that quarter.
The notes will be called at par plus the contingent coupon if each ETF closes at or above its initial level on any quarterly determination date other than the final determination date.
The payout at maturity will be par plus the contingent coupon unless either ETF finishes below its 65% downside threshold, in which case investors will lose 1% for each 1% decline of the lesser performing ETF.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Amount: | $4,315,200
|
| Underlying ETFs: | Financial Select Sector SPDR fund, Energy Select Sector SPDR fund, Industrial Select Sector SPDR fund
|
| Maturity: | Dec. 30, 2022
|
| Coupon: | 8.5% annualized for each quarter that each ETF closes at or above downside threshold on observation date for quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if each ETF finishes at or above downside threshold; otherwise, 1% loss for each 1% decline of worst performing ETF
|
| Call: | At par plus contingent payment if each ETF closes at or above initial level on any quarterly determination date other than the final determination date
|
| Initial levels: | $28.95 for Financial, $38.12 for Energy, $88.00 for Industrial
|
| Downside thresholds: | $18.818 for Financial, $24.778 for Energy, $57.20 for Industrial; 65% of initial levels
|
| Pricing date: | Dec. 24
|
| Settlement date: | Dec. 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61771J230
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