Morgan Stanley plans contingent income autocallables on three funds

By Wendy Van Sickle

Columbus, Ohio, Feb. 21 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Aug. 31, 2021 linked to the least performing of the Financial Select Sector SPDR fund, the SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at an annual rate of at least 7% if each fund closes at or above its downside threshold, 70% of its initial level, on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if each fund closes above 96% of its initial level on any quarterly review date.

The payout at maturity will be par plus the final contingent coupon, if any, unless any fund finishes below its downside threshold, in which case investors will be fully exposed to any losses of the worst performing fund.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Feb. 26.

The Cusip number is 61770FMJ2.

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