Morgan Stanley plans contingent income autocallables tied to Chipotle

By Toni Weeks

San Luis Obispo, Calif., June 6 - Morgan Stanley plans to price contingent income autocallable securities due June 2014 linked to Chipotle Mexican Grill, Inc. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 9.75% to 11.75% if Chipotle stock closes at or above the 75% barrier level on the determination date for that quarter.

If the shares close at or above the initial price on any of the first three quarterly determination dates, the notes will be called at par plus the contingent coupon.

If the notes are not called and Chipotle stock finishes at or above the 75% trigger level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Chipotle stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.

The notes (Cusip: 61762E695) will price and settle in June.

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