Morgan Stanley plans contingent income autocallables on Tesla Motors

By Susanna Moon

Chicago, Oct. 2 – Morgan Stanley plans to price contingent income autocallable securities due Oct. 30, 2015 linked to Tesla Motors, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 11.25% if Tesla Motors stock closes at or above the 70% downside threshold level on a determination date for that month.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any quarterly determination date.

The payout at maturity will be par plus the contingent payment unless the stock finishes below its downside threshold level, in which case investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Oct. 28 and settle on Oct. 31.

The Cusip number is 61761JTP4.

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