Morgan Stanley eyes contingent income autocalls on indexes, ETF

By Sarah Lizee

Olympia, Wash., Aug. 13 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Feb. 19, 2021 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at the rate of 7.8% per year if each asset closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that period.

The notes will be automatically called at par if each asset closes at or above its initial level on any quarterly determination date.

The payout at maturity will be par unless any asset has ever closed below its 70% downside threshold during the life of the notes, in which case investors will be fully exposed to the return of the least performing asset, subject to a maximum payout of par.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Aug. 14.

The Cusip number is 61769HQM0.

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