By Wendy Van Sickle
Columbus, Ohio, April 2 – Morgan Stanley Finance LLC priced $1 million of contingent income buffered autocallable securities due March 23, 2023 linked to the lesser performing of the S&P 500 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 15.5% 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, 85% of its initial level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines beyond 15%.
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 buffered autocallable securities
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| Underliers: | S&P 500 index and Russell 2000 index
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| Amount: | $1 million
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| Maturity: | March 23, 2023
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| Coupon: | 15.5% per year, payable monthly if each underlier closes at or above its coupon threshold on determination date for that month
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| Price: | Par
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| 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 15%
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| 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
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| Initial levels: | 1,013.889 for Russell, 2,304.92 for S&P
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| Coupon thresholds: | 861.806 for Russell and 1,959.182 for S&P; 85% of initial levels
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| Buffer levels: | 861.806 for Russell and 1,959.182 for S&P; 85% of initial levels
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| Pricing date: | March 20
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| Settlement date: | March 25
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.75%
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| Cusip: | 61770FUE4
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