Morgan Stanley plans contingent income autocallables linked to Valeant

By Susanna Moon

Chicago, April 21 - Morgan Stanley plans to price contingent income autocallable securities due April 2015 linked to Valeant Pharmaceuticals International, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10% if Valeant shares close at or above the barrier level, 56.15% of the initial share price, on a determination date for that quarter.

If the stock closes at or above the initial share price on any of the first three determination dates, the notes will be redeemed at par of $10 plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the barrier level, the payout at maturity will be par plus the contingent payment.

Otherwise, the payout will be a number of Valeant shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price and settle in April.

The Cusip number is 61760S811.

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