Morgan Stanley plans contingent income autocallable notes on bank stocks

By Emma Trincal

New York, Dec. 3 – Morgan Stanley Finance LLC plans to price 0% contingent income autocallable securities due Dec. 14, 2023 linked to the common stocks of Bank of America Corp. and Wells Fargo & Co., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 9.5% per year if each stock closes at or above its coupon barrier level, 60% of its initial level, on the observation date that quarter.

The notes will be automatically called at par if each stock closes at or above its initial level on any quarterly redemption date after one year.

If the lowest-performing stock finishes at or above its barrier level, 60% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing stock finishes below its barrier level, investors will be fully exposed to the decline of the lowest-performing stock from its initial level.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Dec. 11 and settle on Dec. 16.

The Cusip number is 61771ERL4.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.