By Wendy Van Sickle
Columbus, Ohio, May 26 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due May 29, 2020 linked to the common stock of Tesla, Inc., 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 monthly coupon at an annual rate of 13% if the stock closes at or above the 65% downside threshold level on the determination date for that month.
The notes will be called at par plus the contingent coupon if the stock close at or above the initial level on a quarterly determination date beginning in August.
The payout at maturity will be par plus the final coupon unless the stock finishes below its downside threshold, in which case investors will lose 1% for each 1% decline of the stock.
Morgan Stanley & Co. LLC is the underwriter.
| 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 stock: | Tesla, Inc.
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| Amount: | $500,000
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| Maturity: | May 29, 2020
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| Coupon: | 13% per year, payable each month that the stock closes at or above downside threshold level on determination date for that month
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| Price: | Par
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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, full exposure to decline
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| Call: | At par plus contingent coupon if stock closes at or above initial level on a quarterly determination date beginning in August
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| Initial share price: | $310.22
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| Downside threshold: | $201.643; 65% of initial value
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| Pricing date: | May 24
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| Settlement date: | May 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61768CJS7
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