By Wendy Van Sickle
Columbus, Ohio, July 26 – Morgan Stanley Finance LLC priced $2.45 million of contingent income autocallable securities with step-up redemption feature due July 24, 2020 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8.1% if the stock closes at or above the 80% downside threshold level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the redemption threshold on any of the first 11 quarterly determination dates. The redemption threshold will be 105% of the initial share price the first four quarters, 110% of the initial price the next four quarters, then 115% the next three quarters.
The payout at maturity will be par plus the final coupon unless the stock finishes below its downside threshold, in which case investors will lose 1% for each 1% decline of the stock.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities with step-up redemption feature
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| Underlying stock: | Facebook, Inc.
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| Amount: | $2,454,000
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| Maturity: | July 24, 2020
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| Coupon: | 8.1% per year, payable each quarter that the stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to decline
|
| Call: | At par plus contingent coupon if stock closes at or above redemption threshold on any of the first quarterly determination dates; threshold is 105% of the initial share price the first four quarters, 110% of the initial price the next four quarters, then 115% the next three quarters
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| Initial share price: | $164.43
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| Downside threshold: | $131.544; 80% of initial value
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| Pricing date: | July 21
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| Settlement date: | July 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61766X350
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