Morgan Stanley plans contingent income autocallables on Fifth Third

By Jennifer Chiou

New York, April 13 - Morgan Stanley plans to price contingent income autocallable securities due April 2014 linked to the common stock of Fifth Third Bancorp, according to an FWP with the Securities and Exchange Commission.

If Fifth Third stock closes above the downside threshold level - 70% of the initial share price - on a quarterly determination date, investors will receive a semiannual contingent payment of 4.55% to 5.3%. Otherwise, no contingent payment will be made for that period.

If the closing share price is greater than or equal to the initial share price on any of the first five quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Fifth Third shares equal to the principal amount of notes divided by the initial share price or, at Morgan Stanley's option, the cash value of those shares.

The exact contingent payment will be set at pricing.

The notes (Cusip: 61760E614) will price and settle in April.

Morgan Stanley & Co. Inc. is the agent.

© 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.