By Wendy Van Sickle
Columbus, Ohio, March 15 – Morgan Stanley Finance LLC priced $3.13 million of contingent income autocallable securities due March 13, 2020 linked to the lesser-performing of the common stocks of Alphabet Inc. and Johnson & Johnson, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8.25% if the lesser-performing shares close at or above the 75% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if both stocks close at or above the initial price on any determination date after one year.
The payout at maturity will be par plus the final coupon unless either stock finishes below its downside threshold, in which case investors will lose 1% for each 1% decline of the lesser-performing stock.
Morgan Stanley & Co. LLC is the underwriter, and Morgan Stanley Wealth Management is a distributor.
| 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: | Alphabet Inc. and Johnson & Johnson
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| Amount: | $3,125,000.00
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| Maturity: | March 13, 2020
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| Coupon: | 8.25% per year, payable each quarter that each stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If final share price of lesser performing stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to decline of worse performer
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| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any determination date after one year
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| Initial share prices: | $861.405 for Alphabet, $126.21 for Johnson
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| Downside thresholds: | $646.054 for Alphabet, $94.658 for Johnson; 75% of initial share prices
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| Pricing date: | March 10
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| Settlement date: | March 15
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 2.5%
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| Cusip: | 61766V594
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