Morgan Stanley plans range accrual autocallables tied to oil, gold ETFs

By Angela McDaniels

Tacoma, Wash., Jan. 24 – Morgan Stanley Finance LLC plans to price buffered range accrual autocallable securities due Feb. 2, 2021 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the Market Vectors Gold Miners exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each month, the notes will pay a coupon equal to 10.25% per year multiplied by the proportion of days on which each ETF closes at or above its barrier level, 80% of its initial share price.

Beginning six months after issuance, the notes will be automatically called at par if each ETF closes at or above its initial share price on any monthly redemption determination date.

The payout at maturity will be par unless the lesser-performing ETF’s final share price is less than its barrier level, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines beyond 20%.

Morgan Stanley & Co. LLC is the agent.

The notes will price Jan. 28.

The Cusip number is 61768DZT5.

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