Morgan Stanley plans to price contingent income autocalls on stock basket

By Emma Trincal

New York., Aug. 13 – Morgan Stanley Finance LLC plans to price 0% contingent income autocallable securities due May 29, 2024 linked to an equally weighted basket of common stocks, according to a 424B2 filed with the Securities and Exchange Commission.

The basket consists of the stocks of American Airlines Group Inc., United Airlines Holdings, Inc., Norwegian Cruise Line Holdings Ltd. and Carnival Corp.

The securities are guaranteed by Morgan Stanley.

The notes will pay a contingent monthly coupon at an annual rate of 10.25% if the basket closes at or above its 70% coupon barrier on the relevant observation date.

The notes will be called at par plus the coupon if the basket closes at or above its initial level on any monthly review date after six months.

The payout at maturity will be par plus the final coupon unless the basket finishes below its 60% downside threshold, in which case investors will be fully exposed to the basket decline from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Aug. 23 and settle on Aug. 26.

The Cusip number is 61773FNX7.

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