By Wendy Van Sickle
Columbus, Ohio, May 12 – Morgan Stanley Finance LLC priced $2 million of contingent income autocallable securities due April 27, 2023 tied to the worst performing of the stocks of Wells Fargo & Co. and Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 10.56% per year if each stock closes at or above its coupon barrier level, 75% of its initial level, on the observation date that period.
The notes will be automatically called at par if each stock closes at or above its initial level on any quarterly call determination date.
If the lowest-performing stock finishes at or above its downside threshold level, 75% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing stock finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing stock from its initial level.
The notes are guaranteed by Morgan Stanley.
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: | Wells Fargo & Co., Bank of America Corp.
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| Amount: | $2 million
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| Maturity: | April 27, 2023
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| Coupon: | 10.56% per year, payable quarterly if each stock closes at or above coupon barrier level on any observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold level, par; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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| Call option: | At par if each stock closes at or above its initial level on any quarterly call determination date
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| Initial levels: | $43.86 for Wells Fargo, $39.18 for BofA
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| Coupon barriers: | $32.895 for Wells Fargo, $29.385 for BofA; 75% of initial levels
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| Downside threshold levels: | $32.895 for Wells Fargo, $29.385 for BofA; 75% of initial levels
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| Pricing date: | April 23
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| Settlement date: | April 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.35%
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| Cusip: | 61771VWL0
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