Morgan Stanley to sell contingent income autocallables on two indexes

By Devika Patel

Knoxville, Tenn., July 13 – Morgan Stanley Finance LLC intends to price contingent income autocallable securities due April 26, 2021 linked to the worst performing of the Russell 2000 index and the Nasdaq-100 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent quarterly coupon at a rate of 12.25% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that quarter.

Beginning Oct. 19, 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 on any quarterly redemption date.

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: 61771BUS1) will price on July 17 and settle on July 22.

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