Morgan Stanley to price autocallable step-up notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., July 31 - Morgan Stanley plans to price market-linked autocallable step-up notes due Aug. 17, 2027 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

Investors will receive a contingent monthly coupon if the index closes at or above the barrier level, 990, on a monthly determination date. Otherwise, no contingent monthly coupon will be paid that month.

Initially, the contingent monthly coupon will be 7% per year. It will step up to 10% per year on Aug. 17, 2017 and to 15% per year on Aug. 17, 2022.

Beginning in August 2017, the notes will be automatically redeemed at par plus the contingent monthly coupon if the index closes at or above the initial index level on any quarterly redemption determination date.

If the notes are not called, the payout at maturity will be par plus the final contingent monthly coupon, if any.

The notes will price Aug. 14 and settle Aug. 17.

Morgan Stanley & Co. LLC is the agent.

The Cusip number is 617482V68.

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