Chicago, May 3 – Morgan Stanley Finance LLC priced $7.17 million of contingent income autocallable securities due March 20, 2023 tied to a stock basket composed of United Airlines Holdings Inc., Delta Air Lines, Inc., Alaska Air Group, Inc. and JetBlue Airways Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The stocks in the basket are equally weighted at 25% each.
The notes will pay a monthly contingent coupon at the rate of 9% per year if the basket level is above the coupon threshold level, 60% of its initial level, on the related observation date that period.
The notes will be automatically called at par if the basket closes at or above its initial level on any monthly call determination date after six months.
At maturity, if the basket level is above its 60% downside threshold level, the payout will be par plus the coupon.
Otherwise, investors will be fully exposed to the losses of the basket.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
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 basket: | United Airlines Holdings Inc., Delta Air Lines, Inc., Alaska Air Group, Inc. and JetBlue Airways Corp., equally weighted
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Amount: | $7,170,000
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Maturity: | March 20, 2023
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Coupon: | 6% per year, payable monthly if basket closes at or above coupon barrier level on any observation date
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Price: | Par
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Payout at maturity: | If basket finishes at or above downside threshold level, par; if basket finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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Call option: | At par if basket closes at or above its initial level on any monthly call determination date after six months
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Initial levels: | $60.94 for United, $50.99 for Delta, $71.98 for Alaska and $21.64 for JetBlue
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Coupon barrier level: | 60% of initial level
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Downside threshold level: | 60% of initial level
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Pricing date: | March 15
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Settlement date: | March 18
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.9%
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Cusip: | 61771VHB9
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