By Sarah Lizee
Olympia, Wash., Dec. 28 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due Dec. 30, 2021 linked to the least performing of the Russell 2000 index and the S&P 500 index, 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 6.5% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date that quarter.
If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon.
If any index finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing index from its initial level.
Beginning Jan. 3, 2020, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $1 million
|
| Maturity: | Dec. 30, 2021
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| Coupon: | 6.5% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that quarter
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below downside threshold, full exposure to decline of least-performing index from its initial level
|
| Call option: | Beginning Jan. 3, 2020, callable at par on any interest payment date
|
| Initial levels: | 1,329.811 for Russell and 2,467.70 for S&P
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| Coupon barriers: | 797.887 for Russell and 1,480.62 for S&P; 60% of initial levels
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| Downside thresholds: | 797.887 for Russell and 1,480.62 for S&P; 60% of initial levels
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| Pricing date: | Dec. 26
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| Settlement date: | Dec. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.25%
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| Cusip: | 61768DUT0
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