Morgan Stanley plans contingent income autocallables linked to Ford

By Jennifer Chiou

New York, Oct. 18 - Morgan Stanley plans to price contingent income autocallable securities due October 2016 linked to Ford Motor Co. shares, according to an FWP with the Securities and Exchange Commission.

If Ford stock closes at or above the 75% barrier level on a quarterly review date, the notes will pay a contingent quarterly coupon at an annual rate of 8.35% for that quarter.

If the shares close at or above the initial price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent coupon.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock closes below the 75% barrier level, in which case the payout will be a number of Ford shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

The notes (Cusip: 61762W380) are expected to price and settle in October.

Morgan Stanley & Co. LLC is the agent.

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