Morgan Stanley plans contingent income autocallables on Starbucks

By Jennifer Chiou

New York, Jan. 7 - Morgan Stanley plans to price contingent income autocallable securities due January 2016 linked to Starbucks Corp. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment of 2.2375% to 2.7375% if Starbucks stock closes at or above the 75% barrier level on the determination date for that quarter.

If the shares close at or above the initial level on any of the first 11 determination dates, the notes will be called at par plus the contingent coupon.

If Starbucks stock finishes at or above the barrier level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will be fully exposed to any losses.

The notes (Cusip: 61761M292) are expected to price and settle in January.

Morgan Stanley & Co. LLC will be the agent.

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