Morgan Stanley plans contingent income autocallables on Ford

By Marisa Wong

Madison, Wis., Sept. 30 - Morgan Stanley plans to price contingent income autocallable securities due October 2014 linked to Ford Motor Co. shares, according to an FWP filing with the Securities and Exchange Commission.

If Ford stock closes at or above the 80% downside threshold level on a quarterly review date, the notes will pay a contingent quarterly coupon at an annual rate of 9.3% for that quarter.

If the shares close at or above the initial price on any of the first three 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 downside threshold 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.

Morgan Stanley & Co. LLC is the agent.

The notes will price and settle in October.

The Cusip number is 61762W232.

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