Morgan Stanley plans contingent income autocallables linked to BofA

By Angela McDaniels

Tacoma, Wash., Feb. 4 - Morgan Stanley plans to price contingent income autocallable securities due Feb. 15, 2018 linked to the common stock of Bank of America Corp., according to an FWP filing with the Securities and Exchange Commission.

If Bank of America stock closes at or above the barrier level, 80% of the initial share price, on a monthly determination date, investors will receive a contingent monthly coupon at the rate of 10% per year. Otherwise, no will be paid for that month.

Beginning in February 2015, the notes will be automatically redeemed at par plus the contingent monthly coupon if the closing share price is greater than or equal to the initial share price on any quarterly redemption determination date.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, 70% of the initial share price, the payout at maturity will be par plus the contingent monthly payment. If the final share price is less than the downside threshold level, investors will be fully exposed to the stock's decline from its initial price.

Morgan Stanley & Co. LLC is the agent.

The notes will price Feb. 12 and settle Feb. 15.

The Cusip number is 61761JBX6.

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