Morgan Stanley plans contingent income autocallables linked to Valeant

By Susanna Moon

Chicago, Aug. 7 – Morgan Stanley plans to price contingent income autocallable securities due Aug. 22, 2016 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 13.3% if the shares close at or above the 75% barrier level on the observation date for that quarter.

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

The payout at maturity will be par plus the final coupon unless the shares finish below the 75% barrier level, in which case investors will receive a number of Valeant shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

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

The notes will price on Aug. 14 and settle on Aug. 19.

The Cusip number is 61765R123.

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