Morgan Stanley plans contingent income autocallables on Michael Kors

By Jennifer Chiou

New York, Nov. 6 – Morgan Stanley plans to price contingent income autocallable securities due November 2016 linked to Michael Kors Holdings Ltd. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 11% if Michael Kors stock closes at or above the 75% barrier on a review for that quarter.

The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on any of the first 11 quarterly determination dates.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock closes below the barrier level, in which case the payout will be a number of Michael Kors shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

The notes (Cusip: 61762W521) will price and settle in November.

Morgan Stanley & Co. LLC is the agent.

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