Morgan Stanley plans contingent income autocallables linked to indexes

By Jennifer Chiou

New York, Dec. 30 – Morgan Stanley plans to price contingent income autocallable securities due Jan. 30, 2030 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment of 10% per year if each index closes at or above its initial level on the observation date for that quarter.

Beginning on Jan. 30, 2020, the notes will be redeemed at par plus the contingent payment if each index closes at or above the initial level on any quarterly determination date.

If the notes are not called, the payout at maturity will be par unless either index finishes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worst-performing index. If the value of each index finishes at or above its initial level, investors will also receive the contingent coupon.

The notes (Cusip: 61761JVU0) will price on Jan. 27 and settle on Jan. 30.

Morgan Stanley & Co. LLC is the agent.

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