Morgan Stanley plans contingent income autocallables tied to indexes

By Devika Patel

Knoxville, Tenn., July 5 – Morgan Stanley Finance LLC intends to price contingent income autocallable securities due Aug. 2, 2029 linked to the worst performing of the Russell 2000 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.

Each quarter, the notes will pay a contingent quarterly coupon at a rate of 7% to 8% per year if each index closes at or above its coupon barrier level, 75% of its initial index level, on the determination date for that quarter. The exact coupon will be set at pricing.

Beginning July 29, 2020, the notes will be called at par plus the contingent coupon on any quarterly redemption date if the closing level of each index is greater than or equal to its initial level.

If each index finishes at or above its downside threshold level, 60% of its initial index level, the payout at maturity will be par plus the final contingent coupon, if applicable.

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

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61769HKG9) will price on July 29 and settle July 31.

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