By Kiku Steinfeld
Chicago, April 12 – Morgan Stanley Finance LLC priced $1.5 million of contingent income autocallable securities due Sept. 29, 2022 linked to Tesla, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 21% if the stock closes at or above the coupon threshold level, 60% of the initial share price, on a date for that month.
Beginning June 24, the notes will be called at par plus the contingent coupon if the shares close at or above 80% of their initial share price on any monthly determination date.
The payout at maturity will be par unless the stock finishes below its downside threshold, 50% of the initial share price, in which case investors will lose 1% for each 1% decline.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Tesla, Inc.
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| Amount: | $1.5 million
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| Maturity: | Sept. 29, 2022
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| Coupon: | 21% per year, payable monthly if shares close at or above the downside threshold on determination date for that month
|
| Price: | Par of $10
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
|
| Call: | Beginning June 24, at par plus contingent coupon if shares close at or above 80% of initial share price on any monthly determination date
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| Initial price: | $640.39
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| Call threshold level: | $512.312, 80% of initial price
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| Coupon threshold: | $384.23, 60% of initial price
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| Downside threshold: | $320.195, 50% of initial price
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| Pricing date: | March 25
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| Settlement date: | March 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.85%
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| Cusip: | 61771VMT4
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