Morgan Stanley plans trigger phoenix autocallables linked to two funds

By Marisa Wong

Madison, Wis., Nov. 8 - Morgan Stanley plans to price trigger phoenix autocallable optimization securities due Nov. 22, 2017 linked to the lesser performing shares of the iShares Russell 2000 index fund and the SPDR S&P 500 ETF trust, according to an FWP filing with the Securities and Exchange Commission.

If each fund closes at or above its trigger price - 59% to 64% of the initial fund share price - on any quarterly observation date, the notes will pay a contingent coupon of 8% per year for that quarter. Otherwise, no coupon will be paid that quarter. The exact trigger level will be set at pricing.

If each fund closes at or above its initial price on any quarterly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called, the payout at maturity will be par plus the contingent coupon unless either fund finishes below its trigger price, in which case the payout will be par plus the return of the worse performing fund.

The notes (Cusip: 61755S859) will price on Nov. 16 and settle on Nov. 21.

Morgan Stanley & Co. LLC is the agent, and UBS Financial Services Inc. is the dealer.

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