Morgan Stanley plans contingent income autocallables tied to Coach

By Susanna Moon

Chicago, Oct. 25 - Morgan Stanley plans to price contingent income autocallable securities due November 2013 linked to the common stock of Coach Inc., according to an FWP filing with the Securities and Exchange Commission.

If Coach stock closes at or above the 75% downside threshold level on a quarterly determination date, the notes will pay a contingent payment of 3% to 3.5% for that quarter. The exact contingent quarterly payment will be set at pricing.

If the stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par plus the contingent payment.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the final share price is less than the downside threshold level, in which case the payout will be a number of Coach shares equal to $10.00 divided by the initial share price or, at Morgan Stanley's option, the cash equivalent.

Morgan Stanley & Co. LLC is the agent.

The notes will price in October and settle in November.

The Cusip number is 61755S842.

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