Morgan Stanley plans contingent income autocallables tied to Facebook

By Susanna Moon

Chicago, March 14 - Morgan Stanley plans to price contingent income autocallable securities due March 2015 linked to Facebook, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon an annual rate of 18.5% if Facebook stock closes at or above the 70% barrier level on a determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if the stock closes at or above the redemption level on any of the first three quarterly determination dates.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent coupon.

Otherwise, the payout will be a number of Facebook shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price and settle in March.

The Cusip number is 61760S639.

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