Morgan Stanley plans contingent income autocallables tied to JPMorgan

By Jennifer Chiou

New York, Dec. 22 - Morgan Stanley plans to price contingent income autocallable securities due Dec. 30, 2013 linked to the common stock of JPMorgan Chase & Co., according to an FWP with the Securities and Exchange Commission.

Interest, if any, will be payable semiannually. If the closing share price is greater than the downside threshold level - 70% of the initial share price - on any determination date, the notes will pay a contingent payment of 4% to 5%. Otherwise, no contingent payment will be made for that period.

If the closing share price is greater than the initial share price on any determination date, the notes will be automatically redeemed at par of $10 plus the contingent payment.

If the notes are not called and the final share price is greater than the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than or equal to the downside threshold level, the payout will be par plus the stock return.

The notes (Cusip: 61759G224) will price on Dec. 23 and settle on Dec. 29.

Morgan Stanley & Co. Inc. is the agent.

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