Morgan Stanley eyes trigger autocallable contingent yield notes on Visa

By Sarah Lizee

Olympia, Wash., Jan. 9 – Morgan Stanley Finance LLC plans to price trigger autocallable contingent yield notes due Jan. 14, 2022 linked to Visa Inc. stock, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if the shares close at or above the coupon barrier, 69% to 74% of the initial share price, on the observation date for that quarter.

The notes will be automatically called at par of $10 if the shares close at or above the initial share price on any quarterly observation date beginning July 11.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, 69% to 74% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

The exact coupon barrier and downside threshold will be set at pricing.

Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.

The notes will price on Jan. 11.

The Cusip number is 61768W715.

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