By Susanna Moon
Chicago, Jan. 25 – Morgan Stanley Finance LLC priced $1.42 million of contingent income autocallable securities due Jan. 24, 2020 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.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.5% if each fund closes at or above its 60% downside threshold on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if each fund closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par plus the final contingent coupon unless either fund finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worse performing fund.
Morgan Stanley & Co. LLC is the agent.
| 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 fund: | VanEck Vectors Oil Services ETF and United States Oil Fund, LP
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| Amount: | $1,416,000
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| Maturity: | Jan. 24, 2020
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| Coupon: | 8.5% per year, payable quarterly if each fund closes at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | Par unless either fund finishes below 50% downside threshold, in which case full exposure to any losses of the worse performing fund
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| Call: | At par plus contingent coupon if each fund closes at or above initial level on any quarterly determination date
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| Initial share prices: | $34.16 for VanEck fund and $11.17 for US Oil Fund, closing prices on Jan. 19
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| Downside thresholds: | $20.496 for VanEck fund and $6.702 for US Oil Fund; 60% of initial levels
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| Pricing date: | Jan. 20
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| Settlement date: | Jan. 25
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3%
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| Cusip: | 61768CEG8
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