Morgan Stanley plans contingent income autocallables on S&P, Stoxx

By Marisa Wong

Morgantown, W.Va., Jan. 20 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Jan. 26, 2027 linked to the worse performing of the S&P 500 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Interest is payable quarterly. The notes will pay a fixed coupon at a rate of 9.85% per year for the first two years. After that, the notes will pay a contingent coupon at a rate of 9.85% per year for each quarter that each index closes at or above its initial level on the observation date for that quarter, plus any previously unpaid contingent quarterly coupons.

After an initial two-year non-call period, the notes will be called at par if each index closes at or above its initial level on any quarterly determination date.

The payout at maturity will be par unless either index finishes below its 50% downside threshold level, in which case investors will be fully exposed to the decline of the worse performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Jan. 23.

The Cusip number is 61768CEF0.

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