Morgan Stanley plans contingent income autocallables tied to Facebook

By Tali Rackner

Norfolk, Va., Nov. 25 – Morgan Stanley plans to price contingent income autocallable securities due Dec. 5, 2018 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Facebook shares close at or above the downside threshold level, 75% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 10.4%.

The notes will be called at par plus the contingent coupon if Facebook shares close at or above the initial share price on any of the first 11 quarterly determination dates.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Nov. 30 and settle on Dec. 3.

The Cusip number is 61765U266.

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