By Marisa Wong
Morgantown, W.Va., Aug. 23 – Morgan Stanley Finance LLC priced $5.39 million of contingent income autocallable securities due Feb. 24, 2017 linked to Freeport-McMoRan Inc. shares, according to a 424B2 filed 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 17.25% if Freeport-McMoRan shares close at or above their downside threshold, 60% of their initial level, on the determination date for that month.
The notes will be called at par of $10 plus the contingent coupon if Freeport-McMoRan shares close above the initial level on any of the first five determination dates.
The payout at maturity will be par plus the final contingent coupon, unless Freeport-McMoRan shares finish below the 60% downside threshold, in which case investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Freeport-McMoRan Inc. (Symbol: FCX)
|
| Amount: | $5,085,410
|
| Maturity: | Feb. 24, 2017
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| Coupon: | 17.25% per year, payable monthly if Freeport-McMoRan shares close at or above downside threshold level on determination date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if Freeport-McMoRan shares close at or above initial share price on any of the first five determination dates
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| Initial share price: | $11.97
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| Downside threshold: | $7.182, 60% of initial share price
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| Pricing date: | Aug. 19
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| Settlement date: | Aug. 24
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.25%
|
| Cusip: | 61766B861
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