Morgan Stanley plans contingent income autocallables tied to Facebook

By Susanna Moon

Chicago, June 3 - Morgan Stanley plans to price contingent income autocallable securities due June 30, 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 11% if Facebook stock closes at or above the 70% barrier level on a determination date for that month.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any quarterly determination date.

The payout at maturity will be par plus the contingent payment unless the stock finishes below its barrier level, in which case the payout will be a number of Facebook shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

Morgan Stanley & Co. LLC is the agent.

The notes will price on June 25 and settle on June 30.

The Cusip number is 61761JRA9.

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