Morgan Stanley plans contingent income autocallables tied to oil index

By Tali Rackner

Norfolk, Va., Sept. 29 – Morgan Stanley plans to price contingent income autocallable securities due Oct. 30, 2017 linked to the S&P GSCI Crude Oil Index – Excess Return, according to an FWP filing with the Securities and Exchange Commission.

If the index closes at or above the downside threshold level, 70% of the initial level, on a quarterly determination date, the notes will pay a contingent coupon that quarter at an annualized rate of 10%.

The notes will be called at par plus the contingent coupon if the index closes at or above the initial index level on any determination date beginning April 27, 2016 and excluding the final determination date.

If the final index level is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the index declines beyond the initial level.

Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is handling distribution.

The notes are expected to price on Oct. 27 and settle on Oct. 30.

The Cusip number is 61762GEZ3.

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