By Sarah Lizee
Olympia, Wash., May 6 – Morgan Stanley Finance LLC priced $1.25 million of contingent income autocallable securities due Nov. 3, 2022 linked to the worst performing of the common stocks of Anthem, Inc., Humana Inc. and UnitedHealth Group Inc., 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 an annual rate of 13.15% if each stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date.
The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
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 stocks: | Anthem, Inc., Humana Inc. and UnitedHealth Group Inc.
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Amount: | $1.25 million
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Maturity: | Nov. 3, 2022
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Coupon: | 13.15% per year, payable each quarter that each stock closes at or above coupon barrier on determination date for that period
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Price: | Par
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Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
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Call: | Par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date
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Initial share prices: | $280.73 for Anthem, $381.82 for Humana, $292.47 for UnitedHealth
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Coupon barriers: | $168.438 for Anthem, $229.092 for Humana, $175.482 for UnitedHealth; 60% of initial share prices
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Downside thresholds: | $168.438 for Anthem, $229.092 for Humana, $175.482 for UnitedHealth; 60% of initial share prices
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Pricing date: | April 30
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Settlement date: | May 5
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.25%
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Cusip: | 61771BBW3
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