By Taylor Fox
New York, Nov. 23 – Morgan Stanley Finance LLC priced $2.33 million of contingent income autocallable securities due Nov. 14, 2023 linked to the common stocks of Adobe Inc., PayPal Holdings, Inc. and Walgreens Boots Alliance, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If the shares of reach stock close at or above the downside coupon threshold price, 70% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 13.75%.
The notes will be called at par plus the contingent coupon if the shares of each stock close at or above the initial share price on any quarterly determination date after six months.
If the final share price of the worst performer is greater than or equal to the 50% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price of the worst performer is less than the initial share price.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is acting as dealer.
| 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: | Adobe Inc., PayPal Holdings, Inc. and Walgreens Boots Alliance, Inc.
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| Amount: | $2,332,000
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| Maturity: | Nov. 14, 2023
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| Coupon: | 13.75% per year, payable monthly if shares of each stock close at or above coupon 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 performer is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price of worst performer is less than initial share price
|
| Call: | At par plus contingent coupon if shares of each stock close at or above initial share price on any quarterly determination date after six months
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| Initial share price: | $471.14 for Adobe, $184.72 for PayPal and $39.79 for Walgreens
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| Coupon threshold levels: | $329.798 for Adobe, $129.304 for PayPal and $27.853 for Walgreens, 70% of initial share price
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| Downside threshold: | $235.57 for Adobe, $92.36 for PayPal and $19.895 for Walgreens, 50% of initial share price
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| Pricing date: | Nov. 9
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| Settlement date: | Nov. 13
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 0.25%
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| Cusip: | 61771EKE7
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