Morgan Stanley plans contingent income autocallables on Apple

By Wendy Van Sickle

Columbus, Ohio, March 17 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due March 27, 2020 linked to Apple Inc. stock, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes will pay a contingent quarterly coupon at an annual rate of 9.1% if the shares close at or above the 80% downside threshold on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if Apple shares close at or above the redemption threshold on any of the first 11 determination dates. The threshold is 105% of the initial price on the first four dates, 110% on the next four dates and 115% on the final three dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the downside threshold, in which case investors will lose 1% for each 1% decline.

Morgan Stanley & Co. LLC is the underwriter.

The notes will price March 24.

The Cusip number is 61766V776.

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