Morgan Stanley plans autocallable step-up notes linked to Russell 2000

By Toni Weeks

San Diego, July 3 - Morgan Stanley plans to price 0% market-linked autocallable step-up notes due July 30, 2032 linked to the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

If the index closes at or above the barrier level, 490, on a monthly determination date, investors will receive a contingent monthly coupon. Otherwise, no contingent monthly coupon will be paid that quarter. The contingent monthly coupon will be 8% per year in years one through five, 10% per year in years six through 10, 12% per year in years 11 through 15 and 15% per year in years 16 through 20.

Beginning in July 2017, the notes will be automatically redeemed at par plus the contingent monthly coupon if the index closes at or above the initial index level on any monthly redemption determination date.

The payout at maturity will be par plus the final contingent monthly coupon, if any.

The notes (Cusip: 617482U51) will price July 26 and settle July 31.

Morgan Stanley & Co. LLC is the agent.

© 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.