By Taylor Fox
New York, Nov. 30 – Morgan Stanley Finance LLC priced $500,000 of contingent income securities due Nov. 23, 2022 linked to the common stock of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the downside threshold level, 55% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon that quarter at an annualized rate of 15%.
If the final share price is greater than or equal to the initial share price, the payout at maturity will be par plus the final coupon plus an 8% upside payment.
If the final share price declines but is greater than the 55% downside threshold level, the payout at maturity will be par plus the final contingent coupon.
Otherwise, investors will be fully exposed to the losses of the stock.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying stock: | Tesla, Inc.
|
| Amount: | $500,000
|
| Maturity: | Nov. 23, 2022
|
| Contingent payment: | 15% annualized, payable quarterly if stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to initial share price, par plus coupon plus 8%; if final share price is less than initial share price but greater than or equal to downside threshold level, par plus coupon; otherwise, full exposure to losses of stock
|
| Initial share price: | $478.3786
|
| Downside threshold: | $263.10823, 55% of initial price
|
| Pricing date: | Nov. 19
|
| Settlement date: | Nov. 23
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.75%
|
| Cusip: | 61771EMH8
|
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