Morgan Stanley plans worst-of autocallable RevCons on three stocks

By Sarah Lizee

Olympia, Wash., Jan. 7 – Morgan Stanley Finance LLC plans to price 7% to 8.2% worst-of fixed coupon autocallable RevCons due July 15, 2021 linked to the worst performing of the shares of Chevron Corp., Walt Disney Co. and Newmont Mining Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes will be guaranteed by Morgan Stanley.

After six months, if each stock closes at or above its redemption threshold level, 95% of the initial price initially, stepping down by 5% every quarter to 80% of the initial price on the final determination date, the notes will be automatically called at par plus the coupon.

If each stock finishes at or above the 70% downside threshold level, the payout at maturity will be par plus the final coupon. Otherwise, investors will receive a number of shares of the worst performing stock equal to $1,000 divided by the initial price of that stock or, at the issuer’s option, the cash value of those shares.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Jan. 8.

The Cusip number is 61770FCK0.

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