Chicago, May 13 – Morgan Stanley Finance LLC priced $7.01 million of contingent income autocallable securities due May 5, 2022 linked to the worst performing of the common stocks of Walmart Inc., Costco Wholesale Corp., and Wayfair Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 50% of its initial share price, on a quarterly observation date, the notes will pay a contingent payment that quarter at an annualized rate of 19.5%.
Beginning Aug. 1, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date.
If each stock’s final share price is greater than or equal to its 50% 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 lesser-performing stock declines from its 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 stocks: | Walmart Inc. (WMT), Costco Wholesale Corp. (COST) and Wayfair Inc. (W)
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| Amount: | $7,005,000
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| Maturity: | May 5, 2022
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| Coupon: | 19.5% per year, payable quarterly if each stock closes at or above downside threshold level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock’s final share price is greater than or equal to 50% downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | Beginning Aug. 1, at par plus contingent coupon if each stock closes at or above initial share price on any quarterly determination date other than final determination date
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| Initial share prices: | $101.36 for Walmart, $241.59 for Costco, $163.53 for Wayfair
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| Downside thresholds: | $50.68 for Walmart, $120.795for Costco, $81.765 for Wayfair; 50% of initial share price
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| Pricing date: | May 3
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| Settlement date: | May 8
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.45%
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| Cusip: | 61769HAT2
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