Morgan Stanley eyes contingent income autocallables on three stocks

By Sarah Lizee

Olympia, Wash., June 7 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due June 30, 2022 linked to the worst performing of the common stocks of Walt Disney Co., Intel Corp. and Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

If each stock closes at or above its downside threshold level, 60% of its initial share price, on a monthly observation date, the notes will pay a contingent payment that month at an annualized rate of 11.25%.

Beginning Sept. 25, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date.

If each stock’s final share price is greater than or equal to its 60% 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 lesser-performing stock declines from its initial share price.

Morgan Stanley & Co. LLC is the agent.

The notes will price on June 25.

The Cusip number is 61769HGV1.

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