By Tali Rackner
Minneapolis, Jan. 24 – Morgan Stanley Finance LLC priced $7.55 million of trigger autocallable contingent yield notes due Jan. 15, 2021 linked to the common stock of Royal Caribbean Cruises Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 9% per year if the shares close at or above the coupon barrier level, 69.5% of the initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 plus the coupon if the shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 69.5% of the initial share price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | Royal Caribbean Cruises Ltd. (Symbol: RCL)
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| Amount: | $7,551,300
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| Maturity: | Jan. 15, 2021
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| Contingent coupon: | 9%, payable each quarter that stock closes at or above coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless stock finishes below downside threshold, in which case 1% loss for each 1% decline from initial price
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| Call: | After six months, automatically at par if stock closes at or above initial price on any quarterly observation date
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| Initial price: | $127.53
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| Coupon barrier: | $88.63, 69.5% of initial price
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| Downside threshold: | $88.63, 69.5% of initial price
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 18
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
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| Fees: | 2%
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| Cusip: | 61768M329
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