Morgan Stanley plans autocallable jump securities tied to indexes

By Sarah Lizee

Olympia, Wash., May 15 – Morgan Stanley Finance LLC plans to price 0% jump securities with autocallable feature due May 23, 2023 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes will be called at par plus an annual premium of 11.5% to 13.5% if each index closes at or above 95% of its initial level on any semiannual observation date.

The payout at maturity will be par plus 34.5% to 40.5% if each index finishes at or above 95% of its initial level. If the worst performing index declines by no more than 30%, the payout will be par. If the worst performing index finishes below its 70% downside threshold level, investors will be fully exposed to the decline.

Morgan Stanley & Co. LLC is the underwriter.

The notes will price on May 18.

The Cusip number is 61771BBV5.

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