Morgan Stanley to price contingent income autocallables on two stocks

By Devika Patel

Knoxville, Tenn., Dec. 22 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 30, 2020 linked to the common stocks of Microsoft Corp. and Oracle Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent quarterly payment if each stock closes at or above its downside threshold level, 70% of its initial level, on the determination date for that quarter. The contingent coupon rate is expected to be between 8.25% and 9% annually and will be set at pricing.

Morgan Stanley may call the notes at par of $1,000 plus any contingent coupon on any quarterly determination date if the closing level of each stock is greater than or equal to its initial level, beginning June 27, 2018.

If each stock 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 is the agent.

The notes (Cusip: 61768CWK9) will price on Dec. 27 and settle on Dec. 29.

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