Morgan Stanley plans contingent income autocalls on Dow, Nasdaq

By Sarah Lizee

Olympia, Wash., April 9 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Oct. 29, 2020 linked to the least performing of the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each month, the notes will pay a contingent coupon at the rate of 6% to 8% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that month.

The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date after six months.

A trigger event occurs if, on any trading day during the life of the notes, the closing level of either underlying index is less than its downside threshold level, 70% of its initial level.

At maturity, if a trigger event has not occurred, the payout will be par.

If a trigger event has occurred, investors will receive par plus the return of the lesser performing index with full exposure to any decline, subject to a maximum payout of par.

Morgan Stanley & Co. LLC is the agent.

The notes will price on April 25.

The Cusip number is 61768D5M3.

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