By Sarah Lizee
Olympia, Wash., May 21 – Morgan Stanley Finance LLC priced $5.04 million of contingent income autocallable securities due May 23, 2023 linked to the worst performing of the common stocks of McDonald’s Corp. and Restaurant Brands International 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 an annual rate of 12.85% if each stock closes at or above its coupon barrier, 50% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date.
The payout at maturity will be par unless any stock finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is the 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: | McDonald’s Corp. and Restaurant Brands International Inc.
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| Amount: | $5.04 million
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| Maturity: | May 23, 2023
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| Coupon: | 12.85% per year, payable each quarter that each stock closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
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| Call: | Par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date
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| Initial share prices: | $179.83 for McDonald’s, $52.35 for Restaurant Brands
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| Coupon barriers: | $89.915 for McDonald’s, $26.175 for Restaurant Brands; 50% of initial share prices
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| Downside thresholds: | $89.915 for McDonald’s, $26.175 for Restaurant Brands; 50% of initial share prices
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| Pricing date: | May 18
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| Settlement date: | May 21
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 61769P826
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