By Kiku Steinfeld
Chicago, Dec. 12 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due April 11, 2025 linked to the stocks of American Eagle Outfitters, Inc. and Farfetch Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 25%, paid monthly, if each underlying stock closes at or above its 50% downside threshold on the related monthly observation date, plus any previously unpaid coupons.
The securities will be called automatically starting July 18 at par if the price of each underlying stock is greater than or equal to 80% of its initial price on any monthly call determination date.
At maturity the payout will be par unless the worst performing stock closes below its 50% downside threshold level in which case investors will be fully exposed to the decline of the worst performing stock.
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: | American Eagle Outfitters, Inc. and Farfetch Ltd.
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| Amount: | $1 million
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| Maturity: | April 11, 2025
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| Coupon: | 25%, paid monthly, if each underlying stock closes at or above its 50% downside threshold on the related monthly observation date, plus any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par unless the worst performing stock closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing stock
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| Call: | Automatically starting July 8 at par if the price of each underlying stock is greater than or equal to 80% of its initial price on any monthly call determination date
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| Initial levels: | $16.21 for American, $14.30 for Farfetch
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| Downside thresholds: | $8.105 for American, $7.15 for Farfetch, 50% of initial level
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| Call threshold: | $12.968 for American, $11.44 for Farfetch, 80% of initial levels
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| Pricing date: | April 11
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| Settlement date: | April 14
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.6%
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| Cusip: | 61773QP86
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