Morgan Stanley plans contingent income autocallables on two indexes

By Marisa Wong

Madison, Wis., May 2 - Morgan Stanley plans to price contingent income autocallable securities due May 30, 2029 with a two-year initial non-call period linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9% if each index closes at or above its initial level on a quarterly determination date.

Following the initial two-year non-call period, the notes will be redeemed at par plus the contingent coupon if each index closes at or above its respective initial level on any quarterly redemption determination date beginning in May 2016.

If the notes are not called, the payout at maturity will be par plus the final contingent coupon, if any, unless either index finishes below its 50% downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price on May 27 and settle on May 30.

The Cusip number is 61761JQU6.

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