Morgan Stanley eyes contingent income autocalls linked to indexes

By Sarah Lizee

Olympia, Wash., Nov. 13 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Nov. 22, 2034 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

For the first two years, the notes will pay a fixed coupon each quarter at a rate of 7.75% per year.

After that, the notes will pay a quarterly contingent coupon of 7.75% per year if each index closes at or above its coupon threshold level, 60% of its initial level, on the determination date for that quarter, plus any previously unpaid coupons.

Beginning Nov. 15, 2021, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly redemption determination date.

The payout at maturity will be par unless any index closes below its 60% downside threshold level in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Nov. 15.

The Cusip number is 61769HQ57.

© 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.