Morgan Stanley plans autocallable PLUS linked to financial sector ETF

By Angela McDaniels

Tacoma, Wash., Nov. 13 – Morgan Stanley plans to price autocallable Performance Leveraged Upside Securities due Dec. 5, 2017 linked to the Financial Select Sector SPDR Fund, according to an FWP filing with the Securities and Exchange Commission.

If the ETF’s shares close at or above the call threshold level, 110% of the initial share price, on May 31, 2016, the notes will be automatically redeemed at 110% of par.

If the notes are not called and the final share price is greater than or equal to the initial share price, the payout at maturity will be par of $10 plus 150% of the ETF return, subject to a maximum return of 28%. If the final share price is less than the initial share price, investors will be fully exposed to the ETF’s decline.

Morgan Stanley & Co. LLC is the agent.

The notes will price Nov. 30.

The Cusip number is 61765U225.

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