By Marisa Wong
Morgantown, W.Va., April 26 – Morgan Stanley Finance LLC priced $3.47 million of contingent income autocallable securities with step-up redemption threshold level feature due April 25, 2019 linked to the common stock of Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If Alphabet shares close at or above the downside threshold price, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 8.6%.
The notes will be called at par of $10 plus the contingent coupon if Alphabet shares close at or above the applicable redemption threshold level on any of the first 11 quarterly determination dates. The redemption threshold is 105% of the initial price for the first four determination dates, 110% of the initial price for the next four dates and 115% of the initial price for the last three.
If the final share price is greater than or equal to the 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 final share price is less than the 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 with step-up redemption threshold level feature
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Underlying stock: | Alphabet Inc. (Nasdaq: GOOGL)
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Amount: | $3,469,040
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Maturity: | April 25, 2019
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Coupon: | 8.6% per year, payable quarterly if Alphabet shares close at or above downside threshold level on determination date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
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Call: | At par plus contingent coupon if Alphabet shares close at or above redemption threshold on any of first 11 quarterly determination dates
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Initial share price: | $737.77
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Downside threshold: | $590.216, 80% of initial share price
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Redemption thresholds: | $774.659, 105% of initial price, for first four determination dates; $811.547, 110% of initial price, for next four dates; $848.436, 115% of initial price, for last three dates
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Pricing date: | April 22
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Settlement date: | April 27
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.5%
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Cusip: | 61766B333
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