Morgan Stanley updates coupon for planned contingent income autocallables linked to Facebook

By Jennifer Chiou

New York, March 19 - Morgan Stanley changed the contingent quarterly coupon for its upcoming issue of contingent income autocallable securities due March 2015 linked to Facebook, Inc. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon an annual rate of 18.05% if Facebook stock closes at or above the 70% barrier level on a determination date for that quarter. The rate was originally announced at 18.5%.

As reported, 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.

The notes (Cusip: 61760S639) are expected to price in March.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as distributor.

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