By Susanna Moon
Chicago, Oct. 13 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Oct. 22, 2020 linked to the common stock of American Airlines Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.5% if the stock closes at or above the 75% downside threshold level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any determination date after six months.
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.
The notes are guaranteed by Morgan Stanley.
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: | American Airlines Group Inc.
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| Amount: | $500,000
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| Maturity: | Oct. 22, 2020
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| Coupon: | 11.5% per year, payable quarterly if 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 is greater than or equal to downside threshold, par plus contingent coupon; otherwise, 1% loss per 1% decline
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| Call: | At par plus contingent coupon if stock closes at or above initial level on any determination date after six months
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| Initial share price: | $52.03
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| Downside threshold: | $39.023, 75% of initial share price
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| Pricing date: | Oct. 18
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| Settlement date: | Oct. 23
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61768CRY5
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