By Devika Patel
Knoxville, Tenn., April 7– Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due April 11, 2022 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, 85.75% of its initial level, on the 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 beginning on Oct. 11, 2017.
The payout at maturity will be par plus the final contingent coupon, if any, unless the index finishes below the 75% downside threshold, in which case investors will lose 1% for each 1% decline from the index’s initial level.
Morgan Stanley & Co. LLC is the agent.
| 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 index: | Russell 2000
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| Amount: | $1 million
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| Maturity: | April 11, 2022
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| 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
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| 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 from index’s initial level
|
| Call: | Automatically at par plus the contingent coupon if the index closes at or above its initial level on any quarterly determination date beginning on Oct. 11, 2017
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| Initial level: | 1,352.143
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| Coupon barrier level: | 1,159.463, 85.75% of initial level
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| Downside threshold: | 1,014.107, 75% of initial level
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| Pricing date: | April 5
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| Settlement date: | April 10
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61768CGZ4
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