Morgan Stanley to price contingent income autocallables on Facebook

By Toni Weeks

San Luis Obispo, Calif., April 4 - Morgan Stanley plans to price contingent income autocallable securities due April 30, 2015 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Facebook stock closes at or above the downside threshold level, 70% of the initial share price, on any monthly determination date, the notes will pay a contingent coupon at an annual rate of at least 12.5% for that month. The exact contingent payment will be set at pricing.

If the closing share price is greater than or equal to the initial share price on any quarterly determination date, the notes will be automatically redeemed at par plus the contingent payment.

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 payment. If the final share price is less than the downside threshold level, investors will be fully exposed to the stock decline from the initial share price.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61761JPX1) will price April 25 and settle April 30.

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