By Sarah Lizee
Olympia, Wash., April 3 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Oct. 1, 2020 linked to the lesser performing of the SPDR S&P Oil & Gas Exploration & Production ETF and SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 52% per year if each ETF closes at or above its coupon barrier level, 70% of its initial share price, on the determination date for that period.
The notes will be automatically called at par if each ETF closes at or above its call threshold level on any monthly determination date after three months. The threshold will be 100% of the initial share price for each ETF.
The payout at maturity will be par unless either ETF finishes below its barrier level, 70% of its initial share price, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines.
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 ETFs: | SPDR S&P Oil & Gas Exploration & Production ETF and SPDR S&P Biotech ETF
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| Amount: | $250,000
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| Maturity: | Oct. 1, 2020
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| Coupon: | 52% per year, payable monthly if each ETF closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | Par unless either ETF finishes below barrier level, in which case 1% loss for every 1% that lesser-performing ETF declines
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| Call: | Automatically at par if each ETF closes at or above its call threshold level on any monthly determination date after three months; the threshold will be 100% of the initial share price for each ETF
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| Initial share prices: | $8.63 for oil ETF, $78.23 for biotech ETF
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| Coupon barrier level: | $6.041 for oil ETF, $54.761 for biotech ETF; 70% of initial share prices
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| Barrier level: | $6.041 for oil ETF, $54.761 for biotech ETF; 70% of initial share prices
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| Pricing date: | March 26
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| Settlement date: | March 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.25%
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| Cusip: | 61770FQZ2
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