Morgan Stanley plans contingent income autocallables tied to Facebook

By Susanna Moon

Chicago, May 1 - Morgan Stanley plans to price contingent income autocallable securities due May 31, 2016 linked to Facebook Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 10% if Facebook shares close at or above the coupon barrier level, 70% of the initial share price, on a determination date for that month.

If the stock closes at or above the initial share price on any quarterly determination date, the notes will be redeemed at par of $10 plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the 60% trigger level, the payout at maturity will be par plus the contingent payment.

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.

The notes will price on May 27 and settle on May 30.

The Cusip number is 61761JQH5.

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