Morgan Stanley plans contingent income autocallables linked to Russell

By Toni Weeks

San Luis Obispo, Calif., Feb. 19 - Morgan Stanley plans to price contingent income autocallable securities due March 2018 linked to the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment of at an annualized rate of 5.85% to 7.85% if the index closes at or above the 70% barrier level on the determination date for that quarter. The exact coupon will be set at pricing.

The notes will be called if the index closes at or above its initial level on any annual call date after one year.

If the index finishes at or above the barrier level, the payout at maturity will be par plus the contingent quarterly payment.

Otherwise, investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC will be the agent, and Morgan Stanley Smith Barney LLC will be the dealer.

The notes will price in February and settle three days later in March.

The Cusip number is 61761JCY3.

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