By Sarah Lizee
Olympia, Wash., Dec. 12 – Morgan Stanley Finance LLC priced $908,000 of contingent income autocallable securities due Dec. 1, 2021 linked to the common stock of Snap Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
A contingent monthly coupon at an annual rate of 11% will be paid on each coupon payment date during only the first 18 months of the term of the notes, but only if the closing price of the underlying stock is at or above the coupon threshold level on the related coupon observation date. The coupon threshold level is 60% of the stock’s initial level.
The notes will be called at par if the shares close at or above the call threshold level on any of the first 11 quarterly determination dates. The call threshold level will be the stock’s initial level for the first five redemption dates and 50% of the initial level for the remaining dates.
If the final share price is greater than or equal to the downside threshold level, 50% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
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 stock: | Snap Inc.
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| Amount: | $908,000
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| Maturity: | Dec. 1, 2021
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| Coupon: | Contingent monthly coupon at an annual rate of 11% will be paid on each coupon payment date during only the first 18 months of the term of the notes if the closing price of the underlying stock is at or above the coupon threshold level on the related coupon observation date
|
| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | At par if the shares close at or above the call threshold level on any of the first 11 quarterly determination dates; call threshold level will be the stock’s initial level for the first five redemption dates and 50% of the initial level for the remaining dates
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| Initial share price: | $15.46
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| Coupon threshold: | $9.276, 60% of initial share price
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| Downside threshold: | $7.73, 50% of initial share price
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| Pricing date: | Nov. 26
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| Settlement date: | Dec. 2
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61769HV36
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