Morgan Stanley plans contingent income autocallables tied to indexes

By Sarah Lizee

Olympia, Wash., Oct. 9 – Morgan Stanley Finance LLC intends to price contingent income autocallable securities due Nov. 4, 2021 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes will pay a contingent quarterly coupon at a rate of 8% to 10% per year if each underlying closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that quarter. The exact coupon will be set at pricing.

Beginning April 30, 2019, the notes will be automatically called at par plus the contingent coupon if the closing level of each underlying is greater than or equal to its initial level on any quarterly determination date.

If each underlying finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any.

Otherwise, investors will lose 1% for each 1% decline of the worst performing underlying from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61768DGV1) will price on Oct. 31 and settle on Nov. 5.

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