Morgan Stanley plans contingent income autocallables on three indexes

By Devika Patel

Knoxville, Tenn., Oct. 4 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Oct. 29, 2032 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

In the first 3.5 years, the notes pay an 8% coupon quarterly. Beginning in July 2021, the notes will pay a contingent quarterly payment at a rate of 8% per year plus any previously unpaid contingent quarterly coupons if each index closes at or above its initial level on the determination date for that quarter.

Beginning Oct. 28, 2024, Morgan Stanley may call the notes at par of $1,000 plus any contingent coupon on any quarterly determination date if the closing level of each index is greater than or equal to its initial level.

If each index finishes at or above its downside threshold level, 50% of its initial index level, the payout at maturity will be par plus the final contingent coupon, if any.

Otherwise, investors will lose 1% for each 1% decline of the worst performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61768CRN9) will price on Oct. 26 and settle on Oct. 31.

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