Morgan Stanley plans contingent income autocallables tied to indexes

By Sarah Lizee

Olympia, Wash., Dec. 12 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 27, 2028 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Dow Jones Industrial Average, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 7.5% to 8.5% if each underlying index closes at or above its 70% coupon barrier on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any determination date after one year.

The payout at maturity will be par unless any index finishes below its 60% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Dec. 21.

The Cusip number is 61768DUA1.

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