New Issue: Morgan Stanley sells $1 million contingent income buffered autocalls on Nasdaq, Russell

By Kiku Steinfeld

Chicago, Feb. 5 – Morgan Stanley Finance LLC priced $1 million of contingent income buffered autocallable securities due Feb. 2, 2022 linked to the lesser performing of the Nasdaq-100 index and the Russell 2000 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 5.25% per year if each underlier closes at or above its coupon threshold, 85% of its initial level, on the determination date for that month.

After six months, the notes will be automatically called at par plus the coupon if each underlier closes at or above its initial level on any quarterly redemption determination date.

The payout at maturity will be par plus the coupon unless either underlier finishes below its buffer level, 90% of its initial level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines beyond 10%.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley Finance LLC
Guarantor:	Morgan Stanley
Issue:	Contingent income buffered autocallable securities
Underliers:	Nasdaq-100 index and Russell 2000 index
Amount:	$1,000,000
Maturity:	Feb. 2, 2022
Coupon:	5.25% per year, payable monthly if each underlier closes at or above its coupon threshold on determination date for that month
Price:	Par
Payout at maturity:	Par plus the coupon unless either underlier finishes below its buffer level, in which case investors will lose 1% for every 1% that lesser-performing underlier declines beyond 10%
Call:	After six months, automatically at par plus coupon if each underlier closes at or above its initial level on any quarterly redemption determination date
Initial levels:	1,658.314 for Russell, 9,090.933 for Nasdaq
Coupon thresholds:	1,409.567 for Russell and 7,727.293 for Nasdaq; 85% of initial levels
Buffer levels:	1,492.483 for Russell and 8,181.840 for Nasdaq; 90% of initial levels
Pricing date:	Jan. 28
Settlement date:	Jan. 31
Agent:	Morgan Stanley & Co. LLC
Fees:	2.35%
Cusip:	61769H6Q3

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