Morgan Stanley to price buffered autocallables linked to Russell 2000

By Jennifer Chiou

New York, Oct. 16 - Morgan Stanley plans to price buffered autocallable securities with contingent coupon due Oct. 26, 2017 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Investors will receive a contingent monthly coupon at the rate of 5.75% per year if the index closes at or above the lower barrier level, 70% of the initial index level, and at or below the upper barrier level, 130% of the initial level, on a monthly determination date. Otherwise, no contingent monthly coupon will be paid that month.

Beginning on Oct. 26, 2015, the notes will be automatically redeemed at par plus the contingent monthly coupon if the index closes at or above the initial index level on any quarterly redemption determination date. But if the index closes above the upper barrier on the observation date, the early redemption payment will be par and no contingent coupon.

If the final index level is greater than or equal to the barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the index declines beyond 30%. In both cases, investors will also receive the final contingent monthly coupon, if any.

The notes (Cusip: 6174823D4) are expected to price on Oct. 23 and settle on Oct. 26.

Morgan Stanley & Co. LLC is the agent.

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