Morgan Stanley plans to price contingent income autocalls on indexes

By Sarah Lizee

Olympia, Wash., Oct. 17 – Morgan Stanley Finance LLC intends to price contingent income autocallable securities due April 26, 2021 linked to the worst performing of the Russell 2000 index, the Dow Jones industrial average and the Nasdaq-100 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at a rate of 9.5% to 10.5% per year if each index 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 after six months, the notes will be automatically called at par plus the contingent coupon if the closing level of each index is greater than or equal to its initial level on any quarterly determination date.

If each index stays at or above its downside threshold level, 70% of its initial level, on every day during the life of the notes, the payout at maturity will be par.

Otherwise, investors will be fully exposed to the performance of the worst performing index, subject to a maximum payout of par.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61769HWJ0) will price on Oct. 18.

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