By Susanna Moon
Chicago, Sept. 22 – Morgan Stanley Finance LLC priced $789,000 of contingent income autocallable securities due Sept. 18, 2020 linked to Bank of America Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.25% if the stock closes at or above the 80% 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 quarterly determination date after six months.
The payout at maturity will be par plus the final coupon unless the stock finishes below 80% 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: | Bank of America Corp. (Symbol: BAC)
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| Amount: | $789,000
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| Maturity: | Sept. 18, 2020
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| Coupon: | 9.25% per year, payable each quarter that the stock closes at or above 80% 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 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 any determination date beginning March 15, 2018
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| Initial share price: | $24.38
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| Downside threshold: | $19.504, 80% of initial level
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61768CQE0
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