Morgan Stanley plans trigger phoenix autocallables on Wells Fargo

By Marisa Wong

Madison, Wis., Jan. 21 – Morgan Stanley plans to price trigger phoenix autocallable optimization securities due Jan. 29, 2020 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 coupon barrier – 67.5% to 72.5% of the initial share price – on a monthly observation date, the issuer will pay a contingent coupon for that month at an annualized rate of 6%. The exact barrier level will be set at pricing. Otherwise, no coupon will be paid that month.

If the shares close at or above the initial price on a monthly observation date after one year, the notes will be called at par plus the contingent coupon.

If the notes are not called and Wells Fargo shares finish at or above the 67.5% to 72.5% trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is the dealer.

The notes will price on Jan. 23 and settle on Jan. 28.

The Cusip number is 61764M760.

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