Morgan Stanley plans trigger phoenix autocallables linked to iShares Russell, SPDR S&P 500 funds

By Jennifer Chiou

New York, Jan. 14 - Morgan Stanley plans to price 0% trigger phoenix autocallable optimization securities due Jan. 24, 2018 linked to the iShares Russell 2000 index fund and the SPDR S&P 500 ETF Trust, according to an FWP with the Securities and Exchange Commission.

If both funds close at or above the 65% to 70% trigger level on any quarterly observation date, the notes will pay a contingent coupon of 8% for that quarter. The exact quarterly contingent coupon will be set at pricing.

If both funds close at or above the initial price on any quarterly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called, the payout at maturity will be par plus the contingent coupon unless either fund finishes below the trigger price, in which case investors will be fully exposed to any losses.

The notes (Cusip: 61761M334) are expected to price on Jan. 22 and settle on Jan. 24.

UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.

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