By Wendy Van Sickle
Columbus, Ohio, April 24 – Morgan Stanley Finance LLC priced $3 million of phoenix autocallable securities due April 28, 2022 linked to Microsoft Corp. common shares, 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 a rate of 12.5% per year if the stock closes at or above its downside threshold, 70% of its initial level, on the observation date for that quarter, along with any other previously unpaid coupons.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any quarterly observation date.
If the notes are not called, the payout at maturity will be par plus the final contingent coupon, if any, along with any other previously unpaid coupons unless the stock finishes below its 70% downside threshold, in which case investors will lose 1% for each 1% decline.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Phoenix autocallable securities
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| Underlying stock: | Microsoft Corp.
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| Amount: | $3 million
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| Maturity: | April 28, 2022
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| Coupon: | Each quarter, notes pay contingent coupon at an annual rate of 12.5% per year along with any other previously unpaid coupons if the stock closes at or above barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus final contingent coupon, if any, along with any other previously unpaid coupons unless the stock finishes below its trigger level, in which case 1% loss for each 1% decline
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| Call: | Automatically at par plus contingent coupon if each index closes at or above initial price on any quarterly observation date
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| Initial level: | $173.52
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| Downside threshold: | $121.464 70% of initial level
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| Pricing date: | April 23
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| Settlement date: | April 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61770FT55
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