By Kiku Steinfeld
Chicago, Dec. 26 – Morgan Stanley Finance LLC priced $1.98 million of contingent income autocallable securities due Dec. 22, 2021 linked to the worst performing of the common stocks of Amgen Inc., State Street Corp. and NIKE, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 16% if each stock closes at or above its downside threshold, 65% of its initial level, on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly review date after six months.
The payout at maturity will be par plus the final contingent coupon unless any stock finishes below its 65% 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: | Amgen Inc. (Symbol: AMGN), State Street Corp. (Symbol: STT) and NIKE, Inc. (Symbol: NKE)
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| Amount: | $1,980,000
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| Maturity: | Dec. 22, 2021
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| Coupon: | 16% per year, payable each quarter that each stock closes at or above downside threshold level on determination date for that quarter
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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 plus final contingent coupon; otherwise, full exposure to decline of worst performer
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| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any quarterly review date after six months
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| Initial share prices: | $242.84 for Amgen, $80.33 for State Street, $99.65 for Nike
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| Downside thresholds: | $157.846 for Amgen, $52.215 for State Street, $64.773 for Nike; 65% of initial share prices
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| Pricing date: | Dec. 17
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| Settlement date: | Dec. 20
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61769H5L5
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