Morgan Stanley plans 8%-8.5% contingent income autocalls on stocks

By Susanna Moon

Chicago, Nov. 14 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 2, 2020 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the common stocks of Home Depot, Inc. and Lowe’s Cos., Inc.

The notes will pay a contingent quarterly coupon at an annual rate of 8% to 8.5% if each stock closes at or above its 70% downside threshold on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if each stock closes at or above its redemption threshold on any determination date after six months.

The payout at maturity will be par plus the contingent coupon unless either stock finishes below its 70% downside threshold, in which case investors will lose 1% for each 1% decline in the worse performing stock.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the underwriter.

The notes will price on Nov. 27 and settle on Nov. 30.

The Cusip number is 61768CUC9.

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