Morgan Stanley plans contingent income autocallables tied to Netflix

By Devika Patel

Knoxville, Tenn., Dec. 30 – Morgan Stanley plans to price contingent income autocallable securities due Jan. 19, 2018 linked to the common stock of Netflix, Inc., according to an FWP filed with the Securities and Exchange Commission.

If Netflix stock closes at or above the downside threshold price, 50% of the initial price, on a quarterly determination date, the notes will pay a contingent payment at an annualized rate of 11.75% for that quarter.

If Netflix stock closes at or above its initial price on any of the quarterly determination dates, the notes will be redeemed at par of $1,000 plus the contingent payment.

If the stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment.

Otherwise, investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61761JT90) will price Jan. 13 and settle Jan. 19.

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