Morgan Stanley plans contingent income autocallables linked to indexes

By Sarah Lizee

Olympia, Wash., Nov. 25 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Oct. 31, 2024 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its coupon threshold level, 75% of its initial level, on the determination date for that month. The contingent coupon rate is expected to be 5.85% per year and will be set at pricing.

After one year, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly redemption determination date.

The payout at maturity will be par unless any index finishes below its downside threshold level, 60% of its initial level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.

The notes will be guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price Nov. 26.

The Cusip number is 61769HU86.

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