Morgan Stanley plans six-month contingent income autocallables tied to Freeport-McMoRan

By Susanna Moon

Chicago, Aug. 12 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Feb. 24, 2017 linked to Freeport-McMoRan Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 17.25% if the stock closes at or above its downside threshold level, 60% of its initial level, on the review date for that month.

The notes will be called at par if the stock closes at or above its initial level on any of the first five determination dates.

The payout at maturity will be par unless Freeport-McMoRan shares finish below its 60% downside threshold level, in which case investors will be fully exposed to any losses.

The notes are guaranteed by Morgan Stanley.

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

The notes will price on Aug. 19 and settle on Aug. 24.

The Cusip number is 61766B861.

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