By Taylor Fox
New York, March 25 – Morgan Stanley Finance LLC priced $2.44 million of contingent income autocallable securities due June 15, 2023 linked to the shares of the ARK Innovation ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annual rate of 12.75% if the ETF closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if the ETF closes above its initial level on any monthly redemption date after six months.
The payout at maturity will be par plus any coupon due unless the ETF finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the ETF.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying ETF: | ARK Innovation
|
| Amount: | $2,440,000
|
| Maturity: | June 15, 2023
|
| Coupon: | 12.75% per year, payable each month that ETF closes at or above coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus any coupon; otherwise, full exposure to ETF’s decline
|
| Call: | Par plus the contingent coupon if the ETF closes above its initial level on any monthly redemption date after six months
|
| Initial share price: | $126.68
|
| Coupon threshold level: | $76.008, 60% of initial share price
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| Downside threshold level: | $76.008, 60% of initial share price
|
| Pricing date: | March 12
|
| Settlement date: | March 17
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61771VCM0
|
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