By Wendy Van Sickle
Columbus, Ohio, Aug. 22 – Morgan Stanley Finance LLC priced $5.2 million of contingent income autocallable securities due Aug. 21, 2020 linked to Ali Baba Group Holding Ltd. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.75% if the stock closes at or above the 75% downside threshold on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any of the first 11 quarterly determination dates.
The payout at maturity will be par plus the final coupon unless the stock finishes below its downside threshold, in which case investors will lose 1% for each 1% decline of the stock.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities with step-up redemption feature
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| Underlying stock: | Ali Baba Group Holding Ltd.
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| Amount: | $5,195,020
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| Maturity: | Aug. 21, 2020
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| Coupon: | 8.75% annualized, payable quarterly if stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par
|
| Payout at maturity: | If final share price is at or above downside threshold, par plus contingent coupon; otherwise, full exposure to decline
|
| Call: | At par plus contingent coupon if stock closes at or above initial on first 11 quarterly determination dates
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| Initial share price: | $167.50
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| Downside threshold: | $125.625, 75% of initial level
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 23
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61766X590
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