Morgan Stanley plans contingent income autocallables tied to MetLife

By Jennifer Chiou

New York, March 18 - Morgan Stanley plans to price contingent income autocallable securities due April 2014 linked to the common stock of MetLife, Inc., according to an FWP with the Securities and Exchange Commission.

If MetLife stock closes at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, investors will receive a contingent quarterly coupon of 1.875% to 2.375%, with the exact amount to be set at pricing. Otherwise, no interest will be paid for that quarter.

The notes will be automatically redeemed at par of $10 plus the contingent quarterly coupon if the closing share price is greater than or equal to the initial share price on any of the first three quarterly determination dates.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment. If the final share price is less than the downside threshold level, investors will receive a number of MetLife shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

The notes (Cusip: 61761M771) will price in March and settle in April.

Morgan Stanley & Co. LLC is the agent.

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