Morgan Stanley plans contingent income autocallables linked to Ford

By Susanna Moon

Chicago, Dec. 4 - Morgan Stanley plans to price contingent income autocallable securities due December 2015 with step-up redemption threshold level feature linked to Ford Motor Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment of 2.5625% to 3.0625% if Ford stock closes at or above the 75% barrier level on the determination date for that quarter.

If the shares close at or above the redemption level on any of the first 11 determination dates, the notes will be called at par plus the contingent coupon. The redemption level will be 105% of the initial share price for the first four determination dates, stepping up to 110% of the initial share price for the next for review dates and then to 115% of the initial share price after that.

If Ford stock finishes at or above the barrier level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC will be the agent.

The notes will price in December and settle in January.

The Cusip number is 61761H848.

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