Morgan Stanley plans contingent income autocallables on four stocks

By Devika Patel

Knoxville, Tenn., April 23 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due April 29, 2025 linked to the common stocks of Facebook Inc., Alphabet Inc., Apple Inc. and Microsoft Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent quarterly payment if each stock closes at or above its downside threshold level, 60% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be at least 9.75% annually and will be set at pricing.

Morgan Stanley may call the notes at par plus any contingent coupon if the closing level of each stock is greater than or equal to its initial level on any quarterly redemption date, beginning on July 24.

If each stock finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the worst performing stock from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61770FT48) will price on April 24 and settle on April 29.

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