Chicago, July 17 – Morgan Stanley Finance LLC priced $10 million of buffered phoenix autocallable securities due July 15, 2024 linked to common stock of Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 14.1%, paid monthly, if the underlying stock closes at or above its 85% coupon barrier on the related monthly observation date, plus any previously unpaid coupons.
The securities will be called automatically starting Aug. 15 at par if the price of the underlying stock is greater than or equal to its initial price and on any subsequent monthly review date.
At maturity the payout will be par unless the stock declines by more than its 15% buffer in which case investors will be exposed to 117.65% of the decline of the stock beyond the buffer.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent. J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA will act as placement agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Buffered phoenix autocallable securities
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| Underlying indexes: | Microsoft Corp.
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| Amount: | $10 million
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| Maturity: | July 15, 2024
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| Coupon: | 14.1% annual rate, paid monthly, if the underlying stock closes at or above its 85% coupon barrier on the related monthly observation date, plus any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par if stock gains or loses no more than its 15% buffer, otherwise investors will be exposed to 117.65% of the decline in the stock beyond the buffer
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| Call: | Automatically starting Aug. 15 at par if the price of the underlying stock is greater than or equal to its initial price and on any subsequent monthly review date
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| Initial levels: | $337.22
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| Coupon barrier: | $286.637, 85% of initial level
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| Buffer: | 15%
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| Downside leverage: | 117.65%
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| Pricing date: | July 10
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| Settlement date: | July 13
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| Agent: | Morgan Stanley & Co. LLC
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| Distributor: | J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA
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| Fees: | 0.1%
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| Cusip: | 61775HJU2
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