Morgan Stanley plans contingent income autocallables on Russell 2000

By Angela McDaniels

Tacoma, Wash., Aug. 8 - Morgan Stanley plans to price contingent income autocallable securities due August 2019 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, 50% of the initial index level, on a quarterly determination date, investors will receive a contingent coupon that quarter at the rate of 8.3% to 10.3% per year. The exact rate will be set at pricing. If the index closes below the barrier level, no contingent coupon will be paid that quarter.

If the index closes at or above the initial level on any annual redemption determination date, the notes will be automatically redeemed at par plus the contingent coupon. The redemption determination dates will fall in August of 2013 through 2018.

If the notes are not called and the index finishes at or above the barrier level, the payout at maturity will be par plus the final contingent coupon. If the index finishes below the barrier level, investors will be fully exposed to the index's decline from its initial level.

The notes are expected to price and settle in August.

Morgan Stanley & Co. LLC is the agent.

The Cusip number is 617482X33.

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