By Wendy Van Sickle
Columbus, Ohio, Feb. 28 – Morgan Stanley Finance LLC priced $3 million of contingent income autocallable securities due March 1, 2023 linked to the worst performing of the common stocks of International Business Machines Corp. and salesforce.com, inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 65% of its initial share price, on a quarterly observation date, the notes will pay a contingent coupon that period at an annualized rate of 10.92%.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date after six months.
If each stock’s final share price is greater than or equal to its 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 lesser-performing stock declines from its initial share price.
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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| Underliers: | International Business Machines Corp. and salesforce.com, inc.
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| Amount: | $3 million
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| Maturity: | March 1, 2023
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| Coupon: | 10.92% per year, payable quarterly if each stock closes at or above coupon threshold level on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | At par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date after six months
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| Initial share prices: | $146.43 for IBM, $185.94 for salesforce.com
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| Downside thresholds: | $95.18 for IBM, $120.861 for salesforce.com; 65% of initial share price
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| Pricing date: | Feb. 24
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| Settlement date: | Feb. 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.35%
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| Cusip: | 61770FMW3
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