By Kiku Steinfeld
Chicago, Dec. 30 – Morgan Stanley Finance LLC priced $1 million of phoenix autocallable securities due Sept. 7, 2022 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
If Alibaba shares close at or above the downside threshold, 60% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon of 15.75% per year plus any previously unpaid coupons.
The notes will be automatically called at par if the shares close at or above the initial share price on any quarterly determination date.
The payout at maturity will be par unless Alibaba shares finish below the downside threshold, in which case investors will lose 1% for every 1% that the stock declines from its initial price.
Morgan Stanley & Co. LLC is the agent. JPMorgan Chase Bank NA and J.P. Morgan Securities LLC are acting as placement agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Phoenix autocallable securities
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| Underlying stock: | Alibaba Group Holding Ltd. (Symbol: BABA)
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| Amount: | $1 million
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| Maturity: | Sept. 7, 2022
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| Coupon: | If Alibaba shares close at or above the downside threshold on a quarterly determination date, 15.75% per year, paid quarterly plus any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par unless the shares finish below the downside threshold, in which case 1% loss for every 1% that the stock declines
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| Call: | Automatically at par if shares close at or above initial share price on any quarterly determination date
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| Initial price: | $160.55
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| Downside threshold: | $96.33, 60% of initial price
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| Pricing date: | Aug. 20
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| Settlement date: | Aug. 25
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| Agents: | Morgan Stanley & Co. LLC with JPMorgan Chase Bank NA and J.P. Morgan Securities LLC as placement agents
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| Fees: | 1%
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| Cusip: | 61773FSW4
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