Morgan Stanley plans contingent income autocallables tied to indexes

By Wendy Van Sickle

Columbus, Ohio, Nov. 23 – Morgan Stanley plans to price contingent income auto-callable securities due Dec. 3, 2020 linked to the worst performing of the S&P 500 index, the FTSE 100 index and the Euro Stoxx 50 index, according to an FWP filed with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 10.4% if each index closes at or above its coupon threshold level, 92.125% of its initial level, on the determination date for that quarter.

After one year, the notes will be automatically called at par plus the contingent coupon if each index closes at or above its initial index level on any quarterly redemption determination date.

If each index finishes at or above its downside threshold level, 70% of its initial index level, the payout at maturity will be par plus the final contingent coupon, if applicable. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Nov. 30 and settle on Dec. 3.

The Cusip number is 61761JQ77.

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