Morgan Stanley plans contingent income autocallable notes on ETFs

By Emma Trincal

New York, Oct. 18 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due July 31, 2024 linked to the worst performing of the ARK Innovation ETF and the Energy Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

Interest is payable monthly at an annual rate of 10.5% if each ETF closes above its coupon barrier, 70% of its initial level, on the related observation date.

The notes will be called at par if the shares of the worst performing ETF close at or above their initial price on any monthly observation date after six months.

The payout at maturity will be par if each ETF closes at or above its 60% downside threshold level.

Otherwise, investors will be exposed to the decline of the worst performer from its initial level.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Oct. 26 and settle on Oct. 29.

The Cusip number is 61773F5S8.

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