By Kiku Steinfeld
Chicago, April 28 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due April 6, 2023 tied to the common stocks of Activision Blizzard, Inc., Clorox Co. and Walgreens Boots Alliance, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 15% per year if each stock closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be automatically called at par if each stock closes at or above its initial level on any quarterly call determination date
If the lowest-performing stock finishes at or above its downside threshold level, 65% of its initial level, the payout at maturity will be par. If the lowest-performing stock finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing stock from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| 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: | Activision Blizzard, Inc., Clorox Co. and the ordinary shares of Walgreens Boots Alliance, Inc.
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| Amount: | $1 million
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| Maturity: | April 6, 2023
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| Coupon: | 15% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold level, par; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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| Call option: | At par if each stock closes at or above its initial level on any quarterly call determination date
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| Initial levels: | $95.54 for Activision, $192.83 for Clorox and $54.75 for Walgreens
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| Coupon barrier levels: | $66.87 for Activision, $134.981 for Clorox and $38.325 for Walgreens, 70% of initial levels
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| Downside threshold levels: | $62.101 for Activision, $125.340 for Clorox and $35.588 for Walgreens, 65% of initial levels
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| Pricing date: | April 5
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| Settlement date: | April 8
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61771VSU5
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