By Wendy Van Sickle
Columbus, Ohio, Oct. 27 – Morgan Stanley Finance LLC sold $13.1 million of contingent income autocallable securities due Oct. 26, 2023 tied to common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9.35% per year if the stock closes at or above the coupon threshold level, 65% of the initial level, on the related determination date.
The notes will be automatically called at par plus the coupon if the stock closes at or above the initial level on any quarterly redemption determination date.
The payout at maturity will be par plus the coupon unless the stock finishes below its 65% downside threshold, in which case investors will be fully exposed to the stock’s performance.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Bank of America Corp.
|
| Amount: | $13,097,550
|
| Maturity: | Oct. 26, 2023
|
| Coupon: | 9.35% per year, payable each quarter if stock closes at or above coupon threshold level on the related determination date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any coupon unless stock finishes below downside threshold, in which case investors will be fully exposed to the stock’s performance
|
| Call: | Automatically at par plus coupon if stock closes at or above initial level on any quarterly redemption determination date
|
| Initial levels: | $24.90
|
| Coupon threshold: | $16.185; 65% of initial levels
|
| Downside threshold level: | $16.185; 65% of initial levels
|
| Pricing date: | Oct. 23
|
| Settlement date: | Oct. 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61771D761
|
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