By Taylor Fox
New York, Feb. 22 – Morgan Stanley Finance LLC priced $7.09 million of contingent income autocallable securities due Jan. 30, 2023 tied to an equally weighted basket of the common stocks of United Airlines Holdings, Inc., Delta Air Lines, Inc., Alaska Air Group, Inc. and Southwest Airlines Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 10% per year if the basket closes above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be automatically called at par if the basket closes at or above its initial level on any monthly call determination date after six months.
If the basket 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 the basket finishes below its downside threshold level, investors will be fully exposed to the decline of the basket from its initial level.
The notes are guaranteed by Morgan Stanley.
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 stocks: | United Airlines Holdings, Inc., Delta Air Lines, Inc., Alaska Air Group, Inc. and Southwest Airlines Co.
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| Amount: | $7,090,000
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| Maturity: | Jan. 30, 2023
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| Coupon: | 10% per year, payable monthly if basket closes at or above coupon barrier level on any observation date
|
| Price: | Par
|
| Payout at maturity: | If basket finishes at or above downside threshold level, par; if basket finishes below downside threshold level, full exposure to decline of basket from its initial level
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| Call option: | At par if basket closes at or above its initial level on any monthly call determination date after six months
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| Initial levels: | $40.38 for United Airlines, $38.90 for Delta Air, $52.90 for Alaska Air and $45.62 for Southwest
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| Coupon barrier levels: | 70% of initial levels
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| Downside threshold levels: | 60% of initial levels
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| Pricing date: | Jan. 25
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| Settlement date: | Jan. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.93%
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| Cusip: | 61771EH27
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