Morgan Stanley plans contingent income autocallables linked to Facebook

By Susanna Moon

Chicago, Aug. 21 – Morgan Stanley plans to price contingent income autocallable securities due Aug. 31, 2018 linked to Facebook, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8.1% if the stock closes at or above the 70% coupon barrier level on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any of the first 11 determination dates.

The payout at maturity will be par plus the final coupon unless the stock finishes below the 70% trigger level, in which case investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Aug. 28 and settle on Sept. 2.

The Cusip number is 61765R198.

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