Morgan Stanley plans contingent income autocallables linked to stocks

By Angela McDaniels

Tacoma, Wash., June 19 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due July 1, 2020 linked to the common stocks of Coca-Cola Co., Nike Inc., Pfizer Inc. and Walt Disney Co., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

If each stock closes at or above its downside threshold level, 65% of its initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 9.3%.

Beginning Dec. 26, 2017, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any monthly determination date other than the final determination date.

If each stock finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the worst-performing stock declines from its initial share price.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price June 26.

The Cusip number is 61768CLQ8.

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