Morgan Stanley plans contingent income autocallables linked to Valero

By Marisa Wong

Madison, Wis., April 17 – Morgan Stanley plans to price contingent income autocallable securities due May 1, 2017 linked to Valero Energy Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 10.25% if Valero stock closes at or above the 75% downside threshold level on the determination date for that month.

The notes will be called at par plus the contingent coupon if the stock close at or above its level on any of quarterly determination date.

If the notes are not called and Valero stock finishes at or above the 75% downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will be fully exposed to the share price decline.

Morgan Stanley & Co. LLC is the agent.

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

The Cusip number is 61761JYL7.

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