By Sarah Lizee
Olympia, Wash., Jan. 30 – Morgan Stanley Finance LLC priced $450,000 of contingent income buffered autocallable securities with a six-month initial non-call period due Feb. 2, 2021 linked to the worst performing of the SPDR S&P Oil & Gas Exploration & Production ETF and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annualized rate of 10.5% if each fund closes at or above its coupon barrier level, 80% of its initial level, on the determination date for that month. Otherwise, no coupon will be paid that month.
Beginning Aug. 1, the notes will be called at par if each fund closes at or above its initial level on any monthly early redemption determination date.
If the final level of each fund is greater than or equal to 80% of its initial level, the payout at maturity will be par plus the last contingent quarterly coupon. Otherwise, investors will lose 1% for every 1% that the worst-performing fund declines beyond 20%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income buffered autocallable securities
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| Underlying indexes: | SPDR S&P Oil & Gas Exploration & Production ETF and Energy Select Sector SPDR fund
|
| Amount: | $450,000
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| Maturity: | Feb. 2, 2021
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| Coupon: | 10.5% per year if each fund closes at or above coupon barrier level on monthly determination date; otherwise, no coupon will be paid that month
|
| Price: | Par
|
| Call: | At par if each fund closes at or above its initial level on any monthly early redemption determination date beginning Aug. 1
|
| Payout at maturity: | If final level of each fund is greater than or equal to 80% of initial level, par plus last contingent coupon; otherwise, 1% loss for every 1% that worst-performing fund declines beyond 20%
|
| Initial share prices: | $30.00 for oil & gas ETF, $62.30 for energy ETF
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| Coupon barrier levels: | $24.00 for oil & gas ETF, $49.84 for energy ETF; 80% of initial levels
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| Pricing date: | Jan. 28
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| Settlement date: | Jan. 31
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| Agents: | Morgan Stanley & Co. LLC
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| Fees: | 2.75%
|
| Cusip: | 61768DXD2
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