Morgan Stanley plans contingent income autocallables on SPDR S&P Oil

By Susanna Moon

Chicago, Oct. 14 – Morgan Stanley plans to price contingent income autocallable securities due Oct. 27, 2017 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 11.25% if the fund closes at or above the downside threshold level, 70% of its initial price, on a determination date for that quarter.

The notes will be redeemed at par plus the contingent payment if the fund closes at or above its initial level on any of the first three determination dates.

The payout at maturity will be par unless the fund finishes below the 70% downside threshold level, in which case investors will be fully exposed to any losses.

The agent is Morgan Stanley & Co. LLC.

The notes will price on Oct. 21 and settle on Oct. 26.

The Cusip number is 61766A541.

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