Morgan Stanley plans contingent income autocallables linked to indexes

By Susanna Moon

Chicago, Dec. 29 – Morgan Stanley plans to price contingent income autocallable securities due Dec. 28, 2018 linked to the worst performing of the MSCI EAFE 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 9.3% if each index closes at or above its coupon barrier level, 80% of its initial level, on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any review date.

The payout at maturity will be par plus the final contingent coupon unless either index finishes below the 80% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Dec. 30 and settle on Jan. 5.

The Cusip number is 61765U548.

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