Morgan Stanley plans contingent income autocallable securities on three airline stocks

By Susanna Moon

Chicago, July 11 – Morgan Stanley plans to price contingent income autocallable securities due July 31, 2018 linked to a basket of common shares, according to an FWP filing with the Securities and Exchange Commission.

The underlying companies are United Continental Holdings, Inc., American Airlines Group Inc. and Hawaiian Holdings, Inc.

The notes will pay a contingent quarterly coupon at an annual rate of 11% if all the stocks close at or above the downside threshold level, 70% of their initial prices, on a determination date for that quarter.

The notes will be redeemed at par plus the contingent payment if all the stocks close at or above their initial prices on any quarterly determination date.

If all the stocks finish at or above the 70% downside threshold, the payout at maturity will be par plus the contingent quarterly payment.

Otherwise, investors will be fully exposed to any losses of the worst performing stock.

Morgan Stanley & Co. LLC is the agent.

The notes will price on July 26.

The Cusip number is 61761J3H0.

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