Morgan Stanley plans contingent income autocallables linked to Apple

By Susanna Moon

Chicago, April 21 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due May 1, 2020 linked to Apple Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 8.6% if the shares close at or above the 80% downside threshold on the observation date for that month.

The notes will be called at par plus the contingent coupon if the shares close at or above redemption threshold on any of the first 11 determination dates.

The redemption level will be 105% of the initial share price for the first four review dates, stepping up to 110% of the initial level for the next four review dates and to 115% of the initial level for the final review dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 80% downside threshold, in which case investors will lose 1% for each 1% decline.

Morgan Stanley & Co. LLC is the underwriter, with Morgan Stanley Wealth Management as dealer.

The notes are guaranteed by Morgan Stanley.

The notes will price on April 28 and settle on May 3.

The Cusip number is 61766W311.

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