Morgan Stanley plans contingent income autocallables linked to Snap

By Angela McDaniels

Tacoma, Wash., Nov. 25 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 1, 2021 linked to the class A common stock of Snap Inc., according to an FWP filing with the Securities and Exchange Commission.

During the first 18 months of the term of the notes, the notes will pay a contingent monthly coupon at an annualized rate of 11% if Snap shares close at or above the coupon threshold level, 60% of the initial share price, on the determination date for that month.

The notes will be called at par if Snap shares close at or above the call threshold level on any of seven quarterly redemption determination dates. The call threshold level is 100% of the initial share price for the first five determination dates and 50% of the initial share price for the last two determination dates.

If the final share price is greater than or equal to the downside threshold level, 50% of the initial share price, the payout at maturity will be par. 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 are expected to price Nov. 26.

The Cusip number is 61769HV36.

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