Morgan Stanley plans contingent income autocallables tied to Tesla

By Devika Patel

Knoxville, Tenn., Oct. 1 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Oct. 26, 2021 linked to the common stock of Tesla, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

If Tesla shares close at or above the downside threshold level, 50% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 12% to 14%, with the exact coupon to be set at pricing.

Beginning on Jan. 21, 2020, the notes will be called at par plus the contingent coupon if Tesla shares close at or above the initial share price on any of the monthly redemption dates.

If the final share price is greater than or equal to the 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 share price is less than the initial share price.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61769HB38) will price on Oct. 21 and settle on Oct. 24.

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