New Issue: Morgan Stanley prices $3.39 million contingent income autocallables linked to stocks

By Sarah Lizee

Olympia, Wash., Dec. 24 – Morgan Stanley Finance LLC priced $3.39 million of contingent income autocallable securities due Dec. 9, 2022 linked to the worst performing of the common stocks of JPMorgan Chase & Co., Ulta Beauty, Inc., Halliburton Co. and Walmart Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If each stock closes at or above its downside threshold level, 60% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 19.75%.

Beginning March 13, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above 90% of its initial share price on any quarterly determination date other than the final determination date.

If each stock’s final share price 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 least-performing stock’s final share price 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 stocks:	JPMorgan Chase & Co., Ulta Beauty, Inc., Halliburton Co. and Walmart Inc.
Amount:	$3,385,000
Maturity:	Dec. 9, 2022
Coupon:	19.75% per year, payable quarterly if each stock closes at or above downside threshold level on determination date for that quarter
Price:	Par
Payout at maturity:	If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock’s final share price is less than initial share price
Call:	Beginning June 19, 2020, at par plus contingent coupon if each stock closes at or above 90% of initial share price on any quarterly determination date other than final determination date
Initial share prices:	$135.04 for JPM, $262.20 for Ulta, $22.33 for Halliburton, $119.78 for Walmart
Downside thresholds:	$81.024 for JPM, $157.32 for Ulta, $13.398 for Halliburton, $71.868 for Walmart, or 60% of initial share prices
Pricing date:	Dec. 6
Settlement date:	Dec. 11
Agent:	Morgan Stanley & Co. LLC
Fees:	4%
Cusip:	61769H3H6

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