Morgan Stanley plans contingent income autocallables tied to Facebook

By Marisa Wong

Madison, Wis., Sept. 4 – Morgan Stanley plans to price contingent income autocallable securities due Sept. 30, 2015 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 stock closes at or above the 80% downside threshold 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 price on any quarterly determination date.

The payout at maturity will be par plus the contingent payment unless the stock finishes below its downside threshold level, in which case investors will be fully exposed to the decline.

Morgan Stanley & Co. LLC is the agent.

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

The Cusip number is 61761JST7.

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