Morgan Stanley plans contingent income autocallables linked to stocks

By Susanna Moon

Chicago, Oct. 22 - Morgan Stanley plans to price contingent income autocallable securities due November 2016 linked to the worst performing of the common stocks of Bank of America Corp. and Apple Inc., according to a 424B2 with the Securities and Exchange Commission.

If each stock closes at or above its barrier level, 60% of its initial level, on a quarterly determination date, the notes will pay a contingent coupon at an annual rate of 8% for that quarter.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly call date after one year.

If the final level of each stock is greater than or equal to its 60% barrier level, the payout at maturity will be par plus the final contingent coupon.

Otherwise, investors will be fully exposed to any losses of the worst performing stock.

Morgan Stanley & Co. LLC is the agent.

The notes will price in October and settle in November.

The Cusip number is 61762W406.

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