Morgan Stanley eyes fixed-income autocallable securities on indexes

By Sarah Lizee

Olympia, Wash., Feb. 1 – Morgan Stanley Finance LLC plans to price 7.5% to 9.5% fixed-income autocallable securities due June 2, 2020 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Interest is payable monthly.

The notes will be automatically called at par plus the most recent coupon if each underlying index closes at or above its initial level on any quarterly determination date.

If the notes are not called and each index finishes at or above its initial level or neither index has ever finished below its 70% downside threshold level, the payout at maturity will be par.

Otherwise, investors will lose 1% for each 1% decline of the least-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Feb. 28.

The Cusip number is 61768DK79.

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