Morgan Stanley plans contingent income autocallables tied to Wells Fargo

By Susanna Moon

Chicago, Sept. 16 - Morgan Stanley plans to price contingent income autocallable securities due September 2016 linked to Wells Fargo & Co. shares, according to an FWP filing with the Securities and Exchange Commission.

If Wells Fargo stock closes at or above the 80% barrier level on a quarterly review date, the notes will pay a contingent quarterly coupon at an annual rate of 8% for that quarter.

If the shares close at or above the redemption level on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment. The redemption level will be 105% of the initial share price for the first four determination dates, stepping up to 110% of the initial share price for the next four dates and to 115% of the initial share price for the final three dates.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock closes below the 80% trigger level, in which case the payout will be a number of Wells Fargo shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.

The notes will price and settle in September.

The Cusip number is 61762W125.

© 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.