Morgan Stanley to sell contingent income autocallables on two indexes

By Devika Patel

Knoxville, Tenn., Sept. 19 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Sept. 25, 2028 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 be guaranteed by Morgan Stanley.

In the first two years, the notes pay a 9.25% coupon quarterly. Beginning in December 2020, the notes will pay a contingent quarterly payment at a rate of 9.25% per year plus any previously unpaid contingent quarterly coupon if each index closes at or above its initial level on the determination date for that quarter.

Beginning on Sept. 21, 2020, Morgan Stanley may call the notes at par plus the contingent coupon and any previously unpaid 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, 60% of its initial index level, the payout at maturity will be par plus the final contingent coupon, if any, and any previously unpaid coupons if a coupon is paid.

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: 61768DEY7) will price on Sept. 20 and settle on Sept. 25.

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