Morgan Stanley plans contingent income autocallables tied to Amazon

By Susanna Moon

Chicago, May 5 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due May 31, 2019 Amazon.com, Inc. shares, according to an FWP filed with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The notes will pay a contingent quarterly coupon at an annual rate of 10% if Amazon shares close at or above their downside threshold, 80% of their initial level, on the determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if Amazon shares close above the initial level on any quarterly determination date after six months.

The payout at maturity will be par plus the final contingent coupon, unless Amazon shares finish below the 80% downside threshold, in which case investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Wealth Management is a distributor.

The notes will price on May 25 and settle on May 31.

The Cusip number is 61766BAP6.

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