Morgan Stanley plans contingent income autocallables linked to stocks

By Wendy Van Sickle

Columbus, Ohio, Dec. 13 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 23, 2019 linked to the worst performing of the common stocks of Procter & Gamble Co., Coca-Cola Co. and Archer-Daniels-Midland Co., according to an FWP filed with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The notes will pay a contingent monthly coupon at an annual rate of 9% if each stock closes at or above its downside threshold, 65% of their initial level, on the determination date for that month.

The notes will be called at par of $10 plus the contingent coupon if each stock closes above its initial level on any monthly review date beginning on March 23, 2017.

The payout at maturity will be par plus the final contingent coupon unless any stock finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.

Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Wealth Management is a distributor.

The notes will price on Dec. 19 and settle on Dec. 22.

The Cusip number is 61768CCY1.

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