By Susanna Moon
Chicago, Feb. 20 – Morgan Stanley Finance LLC priced $2.58 million of contingent income autocallable securities due Feb. 5, 2021 linked to Wells Fargo & Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.15% if the stock closes at or above its 80% coupon barrier on the determination date that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its redemption threshold on any of the first 11 determination dates.
The call level will be 105% of the initial share price for the first four redemption dates, stepping up to 110% of the initial share price for the next four redemption dates and to 115% of the initial share price for the final redemption dates.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| 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 stock: | Wells Fargo & Co (Symbol: WFC)
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| Amount: | $8,958,500
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| Maturity: | Feb. 5, 2021
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| Coupon: | 9.15% annualized, payable quarterly if stock closes at or above 80% coupon barrier on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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| Call: | At par if stock closes at or above call level on any of the first 11 determination dates
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| Initial level: | $64.07
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| Trigger level: | $51.256, 80% of initial level
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| Call levels: | 105% of initial share price for first four redemption dates, stepping up to 110% of initial share price for next four redemption dates and to 115% of initial share price for final redemption dates
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| Pricing date: | Feb. 2
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| Settlement date: | Feb. 7
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 2%
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| Cusip: | 61768M501
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