By Sarah Lizee
Olympia, Wash., July 24 – Morgan Stanley Finance LLC priced $1.56 million of contingent income autocallable securities due July 22, 2022 linked to the worst performing of the common stocks of CVS Health Corp. and Centene Corp., 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 12% if each stock closes at or above its downside threshold, 70% of its initial level, on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes above 90% of its initial level on any quarterly review date.
The payout at maturity will be par plus the final contingent coupon unless any stock finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying stocks: | CVS Health Corp. and Centene Corp.
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| Amount: | $1.56 million
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| Maturity: | July 22, 2022
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| Coupon: | 12% per year, payable quarterly if each stock close at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price of least performing stock is less than initial share price
|
| Call: | At par plus contingent coupon if each stock closes at or above 90% of initial share price on any quarterly review date
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| Initial share price: | $55.94 for CVS, $52.66 for Centene
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| Call level: | $50.346 for CVS, $47.394 for Centene; 90% of initial level
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| Downside threshold: | $39.158 for CVS, $36.862 for Centene; 70% of initial level
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| Pricing date: | July 19
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| Settlement date: | July 24
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.125%
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| Cusip: | 61769HLS2
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