Morgan Stanley to price contingent income autocallables on Facebook

New York, July 14 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due July 24, 2020 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes have a step-up redemption threshold level feature.

If Facebook shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 8.1%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Facebook shares close at or above the redemption threshold level on any quarterly determination date other than the final determination date. The redemption threshold level is 105% of the stock’s initial value for the first four determination dates, 110% of the initial value for the next four determination dates and 115% of the initial value for the final three 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 is the agent. Morgan Stanley Wealth Management is a dealer.

The notes are expected to price on July 21 and settle on July 26.

The Cusip number is 61766X350.

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