Morgan Stanley to price autocallable securities linked to Wells Fargo

By Angela McDaniels

Tacoma, Wash., Aug. 18 - Morgan Stanley plans to price 0% autocallable securities due August 2013 linked to the common stock of Wells Fargo & Co., according to an FWP filing with the Securities and Exchange Commission.

If Wells Fargo stock closes at or above the initial share price on any of six semiannual determination dates, the notes will be automatically called at par of $10.00 plus the contingent payment amount multiplied by the contingent payment multiplier.

The contingent payment amount is expected to be $0.525 to $0.575 and will be set at pricing. The contingent payment multiplier will be the number of determination dates up to that point on which the closing stock price is at least 60% of the initial share price.

If the notes are not called, the payout at maturity will be par unless the final share price is less than 60% of the initial share price, in which case investors will receive a number of Wells Fargo shares equal to $10.00 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

In both cases, investors will also receive at maturity the contingent payment amount multiplied by the contingent payment multiplier.

The notes (Cusip: 61759G729) are expected to price and settle in August.

Morgan Stanley & Co. Inc. is the agent.

© 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.