By Taylor Fox
New York, Sept. 1 – Morgan Stanley Finance LLC priced $6 million of contingent income autocallable securities due May 26, 2023 linked to 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 fund 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 fund closes above its initial level on any monthly redemption date after six months.
The payout at maturity will be par unless the fund finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the fund.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying fund: | ARK Innovation ETF
|
| Amount: | $6 million
|
| Maturity: | May 26, 2023
|
| Coupon: | 12.75% per year, payable each month that fund 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; otherwise, full exposure to fund’s decline
|
| Call: | Par plus contingent coupon if fund closes above its initial level on any monthly redemption date after six months
|
| Initial share price: | $139.04
|
| Coupon barrier level: | $83.424, 60% of initial share price
|
| Downside threshold level: | $83.424, 60% of initial share price
|
| Pricing date: | Feb. 23
|
| Settlement date: | Feb. 26
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.875%
|
| Cusip: | 61771EV54
|
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