Morgan Stanley eyes contingent income autocallables on three indexes

By Sarah Lizee

Olympia, Wash., Feb. 7 – Morgan Stanley Finance LLC intends to price contingent income autocallable securities due Feb. 13, 2024 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones Industrial Average, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at a rate of 8% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the determination date for that quarter.

After one year, the notes will be automatically called at par plus the contingent coupon if the closing level of each index is greater than or equal to its initial level on any quarterly redemption date.

If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will be exposed to the losses of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61768DP82) will price on Feb. 8.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.