By Devika Patel
Knoxville, Tenn., Sept. 21– Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Sept. 21, 2021 linked to the Russell 2000 index, 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 annualized rate of 10.25% if the index closes at or above its coupon barrier, 85% of its initial level, on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the index closes at or above its initial level on any quarterly determination date other than the final date after March 21, 2017.
The payout at maturity will be par plus the final contingent coupon, if any, unless the index finishes below the 70% downside threshold, in which case investors will lose 1% for each 1% decline.
Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is acting as dealer.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying index: | Russell 2000
|
| Amount: | $1 million
|
| Maturity: | Sept. 21, 2021
|
| Contingent coupon: | 10.25% per year, payable quarterly if index closes at or above its coupon barrier on quarterly determination date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus the final contingent coupon, if any, unless the index finishes below the downside threshold, in which case 1% loss for each 1% decline
|
| Call: | Automatically at par plus the contingent coupon if the index closes at or above its initial level on any quarterly determination date other than the final date after March 21, 2017
|
| Initial level: | 1,224.779
|
| Coupon barrier level: | 1,041.062, 85% of initial level
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| Downside threshold: | 857.345, 70% of initial level
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| Pricing date: | Sept. 16
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| Settlement date: | Sept. 21
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
|
| Fees: | 3.5%
|
| Cusip: | 61768CAF4
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