By Tali Rackner
Minneapolis, Jan. 24 – Morgan Stanley Finance LLC priced $1.41 million of contingent income autocallable securities due Jan. 22, 2021 linked to the class A common stock of Under Armour, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If Under Armour shares close at or above the downside threshold level, 50% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 10.5%
The notes are noncallable for six months. Beginning July 19, 2018, they will be called at par of $1,000 plus the contingent coupon if Under Armour shares close at or above the initial share price on any determination date.
If the final share price is greater than or equal to the 50% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management handling distribution.
| 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: | Under Armour, Inc.
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| Amount: | $1,411,000
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| Maturity: | Jan. 22, 2021
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| Coupon: | 10.5% annualized, payable quarterly if stock closes at or above downside threshold on determination date that quarter
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| Price: | Par
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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| Call: | Noncallable for six months; beginning July 19, notes will be called automatically at par if stock closes at or above initial price on any determination date
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| Initial share price: | $14.21
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| Downside threshold: | $7.105, 50% of initial price
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| Pricing date: | Jan. 19
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| Settlement date: | Jan. 24
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as distributor
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| Fees: | 2.5%
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| Cusip: | 61768CYA9
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