By Sarah Lizee
Olympia, Wash., Nov. 4 – Morgan Stanley Finance LLC priced $10.74 million of contingent income buffered autocallable securities due May 5, 2022 linked to the lesser performing of the Financial Select Sector SPDR fund, the Energy Select Sector SPDR fund and the Utilities Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9.8% per year if each ETF closes at or above its barrier level, 65% of its initial share price, on the determination date for that quarter.
The notes will be automatically called at par if each ETF closes at or above its initial share price on any quarterly determination date.
The payout at maturity will be par unless either ETF finishes below its barrier level, 65% of its initial share price, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income buffered autocallable securities
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| Underlying ETFs: | Financial Select Sector SPDR fund, Energy Select Sector SPDR fund and Utilities Select Sector SPDR fund
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| Amount: | $10,738,600
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| Maturity: | May 5, 2022
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| Coupon: | 9.8% per year, payable quarterly if each ETF closes at or above barrier level on determination date for that quarter.
|
| Price: | Par
|
| Payout at maturity: | Par unless either ETF finishes below barrier level, in which case 1% loss for every 1% that lesser-performing ETF declines
|
| Call: | Automatically at par if each ETF closes at or above initial share price on any quarterly determination date
|
| Initial share prices: | $28.70 for Financial Select, $57.96 for Energy Select and $64.25 for Utilities Select
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| Barrier level: | $18.655 for Financial Select, $37.674 for Energy Select and $41.763 for Utilities Select, or 65% of initial share prices
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| Pricing date: | Oct. 31
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| Settlement date: | Nov. 5
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
|
| Cusip: | 61770C541
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