Morgan Stanley will price contingent income autocallables on indexes

By Devika Patel

Knoxville, Tenn., May 4 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due May 30, 2031 linked to the worse performing of the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

In the first two years, the notes pay an 8% coupon quarterly. Beginning in August 2018, the notes will pay a contingent quarterly payment at a rate of 8% per year if each index closes at or above its initial level on the determination date for that quarter.

After an initial two-year non-call period, Morgan Stanley may call the notes at par of $1,000 plus any contingent coupon on any quarterly determination date if the closing level of each index is greater than or equal to its initial level.

If each index finishes at or above its downside threshold level, 50% of its initial index level, the payout at maturity will be par plus the final contingent coupon, if any.

Otherwise, investors will be fully exposed to the decline of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61766BAR2) will price on May 25 and settle on May 31.

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