By Marisa Wong
Morgantown, W.Va., June 3 – Morgan Stanley Finance LLC priced $500,000 of trigger income lock-in securities due May 28, 2021 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
A lock-in event will occur if the index’s closing level is greater than 115% of the initial index level on any semiannual observation date.
Coupon
If a lock-in event occurs on any observation date, the notes will pay a contingent semiannual coupon at the rate of 6% per year on each subsequent contingent coupon payment date. For the observation date on which the lock-in event first occurs, the notes will also pay any contingent semiannual coupons for any prior observation dates for which a contingent semiannual coupon was not paid.
If a lock-in event has not occurred on any observation date and the index’s closing level on the relevant observation date is greater than or equal to the initial index level, the notes will pay a contingent semiannual coupon at the rate of 6% per year for that semiannual period. If the index’s closing level is less than the initial index level, no contingent semiannual coupon will be paid for that observation date.
Payout
If a lock-in event has occurred, the payout at maturity will be par plus the final contingent semiannual coupon.
If a lock-in event has not occurred on any observation date and the final index level is greater than or equal to the downside threshold level, 65% of the initial index level, the payout at maturity will be par and, if the final index level is also greater than or equal to the initial index level, the contingent semiannual coupon for the final observation date.
If a lock-in event has not occurred on any observation date and the final index level is less than the downside threshold, investors will lose 1% for every 1% that the final index level is less than the initial index level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger income lock-in securities
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| Underlying index: | Euro Stoxx 50
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| Amount: | $500,000
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| Maturity: | May 28, 2021
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| Coupon: | If a lock-in event occurs on any observation date, contingent semiannual coupon at the rate of 6% per year on each subsequent contingent coupon payment date; if a lock-in event has not occurred on any observation date and the index’s closing level on the relevant observation date is greater than or equal to the initial index level, contingent semiannual coupon at the rate of 6% per year for that semiannual period; if the index’s closing level is less than the initial index level, no contingent semiannual coupon will be paid for that observation date
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| Price: | Par of $1,000
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| Payout at maturity: | If a lock-in event has occurred, par plus the final contingent semiannual coupon; if a lock-in event has not occurred on any observation date and the final index level is greater than or equal to the downside threshold level, par and, if the final index level is also greater than or equal to the initial index level, the contingent semiannual coupon for the final observation date; if a lock-in event has not occurred on any observation date and the final index level is less than the downside threshold, 1% loss for every 1% that the final index level is less than the initial index level
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| Lock-in event: | Index’s closing level is greater than 115% of the initial index level on any semiannual observation date
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| Initial index level: | 3,061.60
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| Downside threshold: | 1,990.04, 65% of initial level
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| Pricing date: | May 25
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| Settlement date: | May 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.75%
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| Cusip: | 61766BAV3
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