Morgan Stanley plans contingent income autocallables linked to Cisco

By Susanna Moon

Chicago, Oct. 4 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Oct. 10, 2019 with step-up redemption threshold linked to Cisco Systems, Inc. shares, according to an FWP filed with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The notes will pay a contingent quarterly coupon at an annual rate of 9.4% if Cisco shares close at or above their downside threshold, 80% of their initial level, on the determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if Cisco shares close above the 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 determination dates, stepping up to 110% of the initial share price for the next four determination dates and to 115% of the initial share price for the final determination dates.

The payout at maturity will be par plus the final contingent coupon unless Cisco shares finish below the 80% downside threshold, in which case investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Wealth Management is a distributor.

The notes will price on Oct. 7 and settle on Oct. 13.

The Cusip number is 61766F318.

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