Morgan Stanley plans contingent income autocallables tied to Facebook

By Angela McDaniels

Tacoma, Wash., Aug. 7 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities with step-up redemption threshold price feature due Aug. 14, 2020 linked to the common stock of Facebook Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

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 8.95%.

The notes will be called at par of $10 plus the contingent coupon if Facebook shares close at or above the applicable redemption threshold price on any quarterly determination date other than the final determination date. The redemption threshold price will be 105% of the initial share price on the first through fourth determination dates, 110% of the initial share price on the fifth through eighth determination dates and 115% of the initial share price on the ninth through 11th 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 are expected to price Aug. 11.

The Cusip number is 61766X566.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.