Morgan Stanley plans 9.05% contingent income autocallables on Apple

New York, July 20 – Morgan Stanley Finance LLC plans to price 9.05% contingent income autocallable securities with a step-up redemption price feature due July 30, 2021 linked to the common stock of Apple Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

If Apple stock closes at or above the downside threshold level, 80% of the initial unit price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.05%.

The notes will be called at par of $10 plus the contingent coupon if Apple stock closes at or above its redemption threshold price on any of the first 11 quarterly determination dates. The redemption threshold price is 105% of the initial price for the first four quarterly determination dates, 110% of the initial price for the next four quarterly determination dates and 115% of the initial price for the ninth, 10th and 11th quarterly determination dates.

If the final stock price is greater than or equal to the 80% 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 final stock price is less than the initial price.

Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes will price on July 27 and settle on Aug. 1.

The Cusip is 61768R401.

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