Morgan Stanley to price contingent income autocallables on Facebook

By Toni Weeks

San Luis Obispo, Calif., Sept. 5 – Morgan Stanley plans to price contingent income autocallable securities due Sept. 25, 2017 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, 72.5% of the initial share price, on any monthly determination date, the notes will pay a contingent coupon at an annual rate of 9.75% for that month.

If the closing share price is greater than or equal to the redemption threshold level on any quarterly early redemption date beginning Dec. 25, the notes will be automatically redeemed at par plus the contingent payment. The redemption threshold level will be 107.5% of the initial share price.

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 receive par plus the stock return, with full exposure to losses.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61761JTD1) will price Sept. 22 and settle Sept. 25.

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