Morgan Stanley plans contingent income autocallables linked to Netflix

By Marisa Wong

Morgantown, W.Va., May 16 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due May 31, 2018 linked to the common stock of Netflix, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

If Netflix shares close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 15%.

The notes will be called at par of $10 plus the contingent coupon if Netflix shares close at or above the initial share price on any quarterly determination date.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

Morgan Stanley & Co. LLC is the agent.

The notes will price on May 25 and settle on May 31.

The Cusip number is 61761J2X6.

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