Morgan Stanley plans contingent income autocallables linked to indexes

By Angela McDaniels

Tacoma, Wash., Aug. 2 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Aug. 29, 2031 linked to the lesser performing of the Euro Stoxx 50 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The interest rate will be 8% for the first year. In years two through 15, the notes will pay a contingent coupon at an annual rate of 8% plus any previously unpaid contingent coupons if each index closes at or above its initial level on the determination date for that quarter.

After three years, the notes will be automatically called at par plus the related quarterly coupon (including any contingent quarterly coupon(s) with respect to any prior observation date(s) for which a contingent quarterly coupon was not paid) if each index closes at or above its initial level on any quarterly redemption determination date.

If the notes have not been automatically redeemed and each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If the final level of either index is less than its downside threshold level, investors will be fully exposed to the decline of the lesser-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price Aug. 26.

The Cusip number is 61766BBT7.

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