Morgan Stanley eyes contingent income autocallable notes on Citigroup

By Devika Patel

Knoxville, Tenn., Dec. 23 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Jan. 3, 2020 linked to the common stock of Citigroup Inc., 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 9.75% if the shares close at or above the 80% downside threshold level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if Citigroup shares close at or above the initial price on any of the first 11 determination dates.

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

Morgan Stanley & Co. LLC is the underwriter.

The notes (Cusip: 61766F813) will price on Dec. 29 and settle Jan. 4.

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