By Wendy Van Sickle
Columbus, Ohio, Aug. 7 – Morgan Stanley Finance LLC priced $2.28 million of callable contingent income securities due Aug. 4, 2022 linked to the VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a coupon at the rate of 11.25% per year if the ETF closes at or above the coupon barrier level, 65% of the initial ETF level, on the observation date for that quarter.
If the ETF finishes at or above the downside threshold level, 65% of its initial level, the payout at maturity will be par. If the ETF finishes below the downside threshold level, investors will be fully exposed to the ETF’s decline from its initial level.
The notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying ETF: | VanEck Vectors Gold Miners ETF
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| Amount: | $2,275,000
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| Maturity: | Aug. 4, 2022
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| Coupon: | 11.25% per year, payable quarterly if ETF closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If ETF finishes at or above downside threshold level, par; if ETF finishes below downside threshold level, full exposure to ETF’s decline from initial level
|
| Call option: | Callable at par on any interest payment date
|
| Initial level: | $41.63
|
| Coupon barrier level: | $27.06, or 65% of initial level
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| Downside threshold: | $27.06, or 65% of initial level
|
| Pricing date: | July 30
|
| Settlement date: | Aug. 4
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.75%
|
| Cusip: | 61771BC28
|
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