By Angela McDaniels
Tacoma, Wash., Jan. 3 – Morgan Stanley Finance LLC priced $4.46 million of contingent income autocallable securities due Jan. 3, 2020 linked to the worst performing of the Energy Select Sector SPDR fund, the Financial Select Sector SPDR fund and the iShares Nasdaq Biotechnology exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley
If each ETF closes at or above its downside threshold level, 70% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9%.
The notes will be called at par plus the contingent coupon if each ETF’s closing share price is greater than or equal to its initial share price on any quarterly redemption determination date.
If the final share price of each ETF 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 worst-performing ETF’s final share price is less than the initial share price.
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: Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and iShares Nasdaq Biotechnology ETF
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| Amount: | $4,464,000
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| Maturity: | Jan. 3, 2020
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| Coupon: | 9% per year, payable quarterly if each ETF’s shares close at or above downside threshold level on quarterly determination date
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| Price: | Par
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| Payout at maturity: | If final share price of each ETF is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that worst-performing ETF’s final share price is less than initial share price
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| Call: | At par plus contingent coupon if each ETF’s closing share price is greater than or equal to initial share price on any quarterly redemption determination date
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| Initial share prices: | $267.17 for biotech ETF, $75.54 for energy fund and $23.20 for financial fund
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| Downside thresholds: | $160.302 for biotech ETF, $45.324 for energy fund and $13.92 for financial fund, or 60% of initial levels
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| Pricing date: | Dec. 29
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| Settlement date: | Jan. 4.
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61768CDA2
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