By Sarah Lizee
Olympia, Wash., March 26 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due March 21, 2022 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If the index closes at or above the downside threshold price, 70% of the initial level, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 18.2%, in which case investors will also receive any previously unpaid coupons.
The notes will be called at par of $10 plus the contingent coupon and any previously unpaid coupons if the index closes at or above the initial level on any quarterly determination date.
If the final level is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon and any previously unpaid coupons. Otherwise, investors will lose 1% for every 1% that the final level is less than the 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: | S&P 500 index
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| Amount: | $1 million
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| Maturity: | March 21, 2022
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| Coupon: | 18.2% per year, payable quarterly if index closes at or above downside threshold level on determination date for that quarter, in which case investors will also receive any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If final level is greater than or equal to downside threshold level, par plus final contingent coupon and any previously unpaid coupons; otherwise, 1% loss for every 1% that final level is less than initial level
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| Call: | At par plus contingent coupon and any previously unpaid coupons if index closes at or above initial level on any quarterly determination date
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| Initial level: | 2,448.193
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| Downside threshold: | 2,305.784, 70% of initial level
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| Pricing date: | March 17
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| Settlement date: | March 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61770FUW4
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