By Angela McDaniels
Tacoma, Wash., Sept. 27 – Morgan Stanley Finance LLC priced $1.07 million of contingent income buffered autocallable securities due Sept. 29, 2022 linked to the lesser performing of the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the VanEck Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10% per year if each ETF closes at or above its buffer level, 70% of its initial share price, on the determination date for that quarter.
Beginning March 25, 2020, the notes will be automatically called at par if each ETF closes at or above its initial share price on any quarterly determination date.
The payout at maturity will be par unless either ETF finishes below its buffer level, 70% of its initial share price, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines beyond 30%.
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 buffered autocallable securities
|
| Underlying ETFs: SPDR S&P Oil & Gas Exploration & Production ETF and VanEck Vectors Gold Miners ETF
|
| Amount: | $1,073,000
|
| Maturity: | Sept. 29, 2022
|
| Coupon: | 10% per year, payable quarterly if each ETF closes at or above buffer level on determination date for that quarter.
|
| Price: | Par
|
| Payout at maturity: | Par unless either ETF finishes below buffer level, in which case 1% loss for every 1% that lesser-performing ETF declines beyond 30%
|
| Call: | Beginning March 25, 2020, automatically at par if each ETF closes at or above initial share price on any quarterly determination date
|
| Initial share prices: | $23.08 for oil ETF and $28.43 for gold ETF
|
| Buffer level: | $16.156 for oil ETF and $19.901 for gold ETF, or 70% of initial share prices
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.6%
|
| Cusip: | 61769HUD5
|
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