Morgan Stanley plans autocallable contingent coupon notes on S&P 500

By Toni Weeks

San Diego, Oct. 31 - Morgan Stanley plans to price contingent coupon autocallable notes due Nov. 17, 2026 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be fixed at 7% for the first four years. After that, a contingent coupon will be paid if the closing value of the S&P 500 on the monthly observation date is equal to or greater than 950. Otherwise, the coupon will be zero for that interest payment period. Beginning in November 2015, the contingent coupon will be 8%, stepping up to 9% in November 2019 and to 10% in November 2023. Interest is payable monthly.

After four years, the notes will be automatically called at par plus the contingent coupon if the index closes at or above the initial index level on a quarterly redemption valuation date.

The payment at maturity will be par plus the final contingent coupon, if any.

The notes (Cusip: 617482D92) are expected to price Nov. 14 and settle Nov. 17.

Morgan Stanley & Co. LLC is the agent.

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