Morgan Stanley plans contingent income autocallables tied to indexes

By Devika Patel

Knoxville, Tenn., April 23 – Morgan Stanley Finance LLC intends to price contingent income autocallable securities due Feb. 3, 2021 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each month, the notes will pay a contingent monthly coupon at a rate of at least 19% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that month. The exact coupon will be set at pricing.

On July 29 or Oct. 29, the notes will be automatically called at par plus the contingent coupon if the closing level of each index is greater than or equal to its initial level.

If each index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus the final contingent coupon.

Otherwise, investors will lose 1% for each 1% decline of the worst performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61770FS31) will price on April 29 and settle on May 4.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.