By Taylor Fox
New York, Feb. 22 – Morgan Stanley Finance LLC priced $900,000 of contingent income autocallable securities due Aug. 2, 2022 linked to the common stock of Airbnb, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annual rate of 14% if the stock closes at or above its coupon barrier, 50% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if the stock closes above 80% of its initial level on any monthly redemption date after three months.
The payout at maturity will be par unless the stock finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the stock.
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 stock: | Airbnb, Inc.
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Amount: | $900,000
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Maturity: | Aug. 2, 2022
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Coupon: | 14% per year, payable each month that stock closes at or above coupon barrier on observation date for that period
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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; otherwise, full exposure to stock’s decline
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Call: | Par plus the contingent coupon if the stock closes above 80% of its initial level on any monthly redemption date after three months
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Initial share price: | $187.37
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Downside threshold level: | $93.685, 50% of initial share price
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Call level: | $149.896, 80% of initial share price
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Pricing date: | Jan. 28
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Settlement date: | Feb. 2
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 1.85%
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Cusip: | 61771EP85
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