By Wendy Van Sickle
Columbus, Ohio, Feb. 15 – Morgan Stanley Finance LLC priced $2.9 million of contingent income autocallable securities due Feb. 14, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a quarterly contingent coupon at an annual rate of 9.15% if the ETF closes at or above the 75% downside threshold on the review date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the ETF closes at or above its initial price on any of the first 11 determination dates.
The payout at maturity will be par unless the ETF finishes below its 75% downside threshold, in which case investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying ETF: | SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $2,902,250
|
| Maturity: | Feb. 14, 2019
|
| Coupon: | 9.15% per year, payable quarterly if ETF closes at or above downside threshold on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If ETF finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
|
| Call: | At par of $10 plus coupon if ETF closes at or above initial price on any of first 11 determination dates
|
| Initial share price: | $32.39
|
| Downside threshold: | $24.293, 75% of initial share price
|
| Pricing date: | Feb. 9
|
| Settlement date: | Feb. 14
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.75%
|
| Cusip: | 61768M626
|
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