Morgan Stanley plans contingent income notes linked to oil, gold ETFs

By Angela McDaniels

Tacoma, Wash., Feb. 5 – Morgan Stanley Finance LLC plans to price contingent income buffered autocallable securities due Feb. 19, 2021 linked to the lesser performing of 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 are guaranteed by Morgan Stanley.

Each month, the notes will pay a contingent coupon if each ETF closes at or above its coupon barrier level, 70% of its initial share price, on the determination date for that month. The contingent coupon rate is expected to be at least 9.2% per year and will be set at pricing.

Beginning Aug. 15, 2019, the notes will be automatically called at par if each ETF closes at or above its initial share price on any monthly determination date.

The payout at maturity will be par unless either ETF declines from its initial share price by more than 15%, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines beyond 15%.

Morgan Stanley & Co. LLC is the agent.

The notes will price Feb. 15.

The Cusip number is 61768DP25.

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