Morgan Stanley plans contingent income autocallables tied to indexes

By Susanna Moon

Chicago, Jan. 26 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Feb. 27, 2032 linked to the worst performing of the S&P 500 index, the Euro Stoxx 50 index and the Nikkei 225 index, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The coupon will be fixed 9% per year for the first three years, payable quarterly. After that, the notes will pay a contingent quarterly coupon at an annual rate of 9% per quarter that each index closes at or above its initial level on the observation date for that quarter.

After an initial 5.5-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 any index finishes below its 50% downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Feb. 17.

The Cusip number is 61768CEH6.

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