Morgan Stanley plans contingent income autocallables on three stocks

By Sarah Lizee

Olympia, Wash., Feb. 12 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Feb. 17, 2023 linked to the least performing of the stocks of Costco Wholesale Corp., NIKE, Inc. and Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at an annual rate of at least 10.45% if each stock closes at or above its downside threshold, 65% of its initial level, on the determination date for that quarter.

After six months, the notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly review date.

The payout at maturity will be par plus the final contingent coupon, if any, 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.

The notes will price on Feb. 14.

The Cusip number is 61770FLK0.

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