By Wendy Van Sickle
Columbus, Ohio, Jan. 4 – Morgan Stanley Finance LLC priced $2.26 million of contingent income autocallable securities due Dec. 30, 2020 linked to the lesser performing of the common stocks of Microsoft Corp. and Oracle Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if each stock closes at or above its 70% downside threshold on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly redemption determination date after six months.
The payout at maturity will be par unless any stock finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| 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: | Microsoft Corp. and Oracle Corp.
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| Amount: | $3.64 million
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| Maturity: | Dec. 30, 2020
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| Coupon: | 8.5% per year, payable quarterly if each stock closes at or above downside threshold on determination date that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above initial level on any quarterly redemption determination date after six months
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| Initial levels: | $85.71 for Microsoft, $47.38 for Oracle
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| Downside thresholds: | $59.997 for Microsoft, $33.166 for Oracle, 70% of initial levels
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| Pricing date: | Dec. 27
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| Settlement date: | Dec. 29
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 2.5%
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| Cusip: | 61768CWK9
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