By Kiku Steinfeld
Chicago, Nov. 1 – Morgan Stanley Finance LLC priced $2.01 million of contingent income autocallable securities due Oct. 1, 2026 linked to the worst performing of the common stocks of Uber Technologies, Inc., Splunk Inc. and Alibaba Group Holding Ltd., 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 an annual rate of 18.25% if each stock closes at or above its coupon barrier, 65% of its initial level, on the determination date for that period.
After three months, the notes will be called at par plus the contingent coupon if each stock closes above its initial level on any monthly redemption date.
The payout at maturity will be par unless any stock finishes below its 55% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
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: | Uber Technologies, Inc., Splunk Inc. and Alibaba Group Holding Ltd.
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| Amount: | $2.01 million
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| Maturity: | Oct. 1, 2026
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| Coupon: | 18.25% per year, payable each month that each stock closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
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| Call: | After three months, the notes will be called at par plus the contingent coupon if each stock closes above its initial level on any monthly redemption date
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| Initial share prices: | $47.25 for Uber, $148.80 for Splunk and $150.18 for Alibaba
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| Coupon barriers: | $28.35 for Uber, $89.28 for Splunk and $90.108 for Alibaba 60% of initial share prices
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| Downside thresholds: | $25.988 for Uber, $81.84 for Splunk and $82.599 for Alibaba; 55% of initial share prices
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| Pricing date: | Sept. 27
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| Settlement date: | Sept. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61773FM75
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