By Devika Patel
Knoxville, Tenn., July 7 – Morgan Stanley Finance LLC priced $6.77 million of contingent income autocallable securities due June 25, 2020 linked to the least performing of the common stocks of JPMorgan Chase & Co., Wells Fargo & Co., Bank of America Corp. and Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 8.25% if the worst-performing shares close at or above the 65% downside threshold level on the observation date for that month.
The notes will be called at par plus the contingent coupon if all stocks close at or above the initial price on any monthly observation date beginning on Dec. 27, 2017.
The payout at maturity will be par plus the final coupon unless any stock finishes below its downside threshold, in which case investors will lose 1% for each 1% decline of the worst-performing stock.
Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Wealth Management is a distributor.
| 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: | JPMorgan Chase & Co. (Symbol: JPM), Wells Fargo & Co. (Symbol: WFC), Bank of America Corp. (Symbol: BAC) and Citigroup Inc. (Symbol: C)
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| Amount: | $6.77 million
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| Maturity: | June 25, 2020
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| Coupon: | 8.25% per year, payable each month that each stock closes at or above downside threshold level on determination date for that month
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| Price: | Par
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| Payout at maturity: | If final share price of worst-performing stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for each 1% 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 monthly observation date beginning Dec. 27, 2017
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| Initial share prices: | $87.12 for JPMorgan, $52.98 for Wells Fargo, $23.13 for BofA, $63.83 for Citigroup
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| Downside thresholds: | $56.628 for JPMorgan, $34.437 for Wells Fargo, $15.035 for BofA, $41.49 for Citigroup; 65% of initial share prices
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| Pricing date: | June 21
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| Settlement date: | June 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768CKZ9
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