Chicago, July 18 – Morgan Stanley Finance LLC priced $1.35 million of contingent income autocallable securities due July 17, 2023 linked to the worst performing of the common stocks of CVS Health Corp., Regions Financial Corp. and Occidental Petroleum 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 14% if each stock closes at or above its downside threshold, 50% 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 its initial level on any quarterly review date beginning July 8, 2020.
The payout at maturity will be par plus the final contingent coupon unless any stock finishes below its 50% 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, and Morgan Stanley Wealth Management is a distributor.
| 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: | CVS Health Corp., Regions Financial Corp. and Occidental Petroleum Corp.
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| Amount: | $1,350,000
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| Maturity: | July 17, 2023
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| Coupon: | 14% per year, payable quarterly if each stock close at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| 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
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| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any quarterly review date beginning July 8, 2020
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| Initial share price: | $55.31 for CVS, $15.13 for RF, $49.30 for OXY
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| Downside threshold: | $27.655 for CVS, $7.565 for RF, $24.65 for OXY; 50% of initial share prices
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| Pricing date: | July 8
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| Settlement date: | July 15
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61769HJW6
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