By Wendy Van Sickle
Columbus, Ohio, Sept. 19 – Morgan Stanley Finance LLC priced $4.35 million of trigger autocallable contingent yield notes due Sept. 17, 2020 linked to the common stock of Freeport-McMoRan 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 the rate of 13.54% per year if the shares close at or above the coupon barrier, 60% of the initial share price, on the observation date for that quarter.
The notes will be automatically called at par of $10 if the shares close at or above the initial share price on any quarterly observation date other than the final one.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 60% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | Freeport-McMoRan Inc.
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| Amount: | $4,349,000
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| Maturity: | Sept. 17, 2020
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| Contingent coupon: | 13.54%, payable quarterly if stock closes at or above coupon barrier level on related quarterly observation date
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| Price: | Par of $10
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| Payout at maturity: | Par unless stock finishes below downside threshold level, in which case 1% loss for each 1% decline from initial price
|
| Call: | Automatically at par if stock closes at or above initial level on any quarterly observation date other than the final one
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| Initial price: | $13.69
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| Coupon barrier: | $8.21, 60% of initial price
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| Downside threshold: | $8.21, 60% of initial price
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| Pricing date: | Sept. 14
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| Settlement date: | Sept. 19
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| Agents: | Morgan Stanley & Co. LLC and UBS Investment Bank
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| Fees: | 1.5%
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| Cusip: | 61768T266
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