Morgan Stanley plans contingent income autocallables on three stocks

By Devika Patel

Knoxville, Tenn., Jan. 11 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Feb. 2, 2022 linked to the common stocks of Facebook Inc., Microsoft Corp. and Nucor Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each month, the notes will pay a contingent quarterly payment if each stock closes at or above its downside threshold level, 50% of its initial level, on the observation date for that month. The contingent coupon rate is expected to be at least 10.15% annually and will be set at pricing.

Morgan Stanley may call the notes at par plus any contingent coupon if the closing level of each stock is greater than or equal to 95% of its initial level on any quarterly redemption date, beginning on April 29.

If each stock finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the worst performing stock from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61768DYK5) will price on Jan. 28 and settle on Jan. 31.

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