By Marisa Wong
Morgantown, W.Va., April 4 – Morgan Stanley Finance LLC priced $3.14 million of contingent income autocallable securities due April 2, 2019 linked to Cisco Systems, Inc. shares, according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8.55% if Cisco shares close at or above their downside threshold, 75% of their initial level, on the determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if Cisco shares close at or above their initial price on any of the first 11 quarterly determination dates.
The payout at maturity will be par plus the final contingent coupon unless Cisco shares finish below the 75% downside threshold, in which case investors will be fully exposed to any losses.
The agent is Morgan Stanley & Co. LLC.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Cisco Systems, Inc. (Nasdaq: CSCO)
|
| Amount: | $3,144,950
|
| Maturity: | April 2, 2019
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| Contingent payment: | 8.55% per year, payable on quarter if Cisco stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if Cisco stock finishes at or above downside threshold; otherwise full exposure to any losses
|
| Call: | At par plus contingent payment if Cisco stock closes at or above initial share price on any of first 11 determination dates
|
| Initial share price: | $27.90
|
| Downside threshold: | $20.925, 75% of initial price
|
| Pricing date: | March 28
|
| Settlement date: | March 31
|
| Agents: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61766B200
|
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