By Sarah Lizee
Olympia, Wash., Aug. 19 – Morgan Stanley Finance LLC priced $2.2 million of callable contingent income buffered securities due Aug. 18, 2022 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 month, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier level, 79% of its initial level, on the observation date that month.
If each index finishes at or above its buffer level, 79% 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 lose 1.2658% for every 1% decline of the lesser performing index beyond 21%.
After one year, the notes will be callable at par on any quarterly date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income buffered securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $2.2 million
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| Maturity: | Aug. 18, 2022
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| Coupon: | 7% per year, payable monthly if each index closes at or above coupon barrier level on observation date that month
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below buffer level, investors will lose 1.2658% for every 1% decline of the lesser performing index beyond 21%
|
| Call option: | After one year, at par on any quarterly date
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| Initial levels: | 2,840.60 for S&P, 1,467.522 for Russell
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| Coupon barrier/buffers: | 2,244.074 for S&P, 1,159.342 for Russell; 79% of initial levels
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| Pricing date: | Aug. 14
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| Settlement date: | Aug. 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.1%
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| Cusip: | 61769HQT5
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