By Sarah Lizee
Olympia, Wash., July 22 – Morgan Stanley Finance LLC priced $562,000 of contingent income buffered autocallable securities due July 22, 2025 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, 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 8% per year if the underlier closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that month.
After a year and a half, the notes will be automatically called at par plus the coupon if the underlier closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par plus the coupon unless the underlier finishes below its buffer level, 75% of its initial level, in which case investors will lose 1% for every 1% that the underlier declines beyond 25%.
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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Underlier: | SPDR S&P Oil & Gas Exploration & Production ETF
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Amount: | $562,000
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Maturity: | July 22, 2025
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Coupon: | 8% per year, payable monthly if the underlier closes at or above coupon barrier level on determination date for that month
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Price: | Par
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Payout at maturity: | Par plus the coupon unless the underlier closes below buffer level, in which case 1% loss for every 1% that the underlier declines beyond 25%
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Call: | Automatically at par plus the coupon if each underlier closes at or above initial level on any quarterly determination date after a year and a half
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Initial level: | $50.61
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Coupon barrier level: | $37.958; 75% of initial level
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Buffer level: | $37.958; 75% of initial level
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Pricing date: | July 17
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Settlement date: | July 22
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Underwriter: | Morgan Stanley & Co. LLC
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Fees: | 4%
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Cusip: | 61771BVN1
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