By Sarah Lizee
Olympia, Wash., May 6 – Morgan Stanley Finance LLC priced $1.2 million of contingent income autocallable securities due May 4, 2023 linked to the worst performing of the common stocks of Bank of America Corp. and Procter & Gamble Co., 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 14.5% if each stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any monthly redemption date after six months.
The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Bank of America Corp. and Procter & Gamble Co.
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| Amount: | $1,204,000
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| Maturity: | May 4, 2023
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| Coupon: | 14.5% per year, payable each month that each stock closes at or above coupon barrier on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
|
| Call: | Par plus the contingent coupon if each stock closes above its initial level on any monthly redemption date after six months
|
| Initial share prices: | $24.05 for BofA, $117.87 for Procter
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| Coupon barriers: | $14.43 for BofA, $70.722 for Procter; 60% of initial share prices
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| Downside thresholds: | $14.43 for BofA, $70.722 for Procter; 60% of initial share prices
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| Pricing date: | April 30
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| Settlement date: | May 5
|
| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61770FR32
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