By Angela McDaniels
Tacoma, Wash., Sept. 28 – Morgan Stanley Finance LLC priced $1.85 million of contingent income autocallable securities due Sept. 30, 2019 linked to the VanEck Vectors Oil Services exchange-traded fund and the United States Oil Fund, LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each ETF’s shares close at or above its downside threshold level, 50% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 8%.
Beginning one year after the settlement date, the notes will be called at par of $10 plus the contingent coupon if each ETF’s shares close at or above its initial share price on any quarterly determination date other than the final determination date.
If the final share price of each ETF is greater than or equal to its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price of the lesser-performing ETF is less than its initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying ETF: | VanEck Vectors Oil Services ETF and United States Oil Fund, LP
|
| Amount: | $1,845,000
|
| Maturity: | Sept. 30, 2019
|
| Coupon: | 8% per year, payable quarterly if each ETF’s shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share prices of both ETFs are greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price of lesser-performing ETF is less than initial share price
|
| Call: | After one year, at par plus contingent coupon if each ETF’s shares close at or above initial share price on any quarterly determination date other than final determination date
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| Initial share prices: | $27.52 for VanEck ETF and $10.53 for US Oil Fund (closing share prices on Sept. 22)
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| Downside thresholds: | $13.76 for VanEck ETF and $5.265 for US Oil Fund; 50% of initial share price
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| Pricing date: | Sept. 23
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| Settlement date: | Sept. 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.88%
|
| Cusip: | 61768CAJ6
|
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