Morgan Stanley plans contingent income autocalls on three indexes

By Sarah Lizee

Olympia, Wash., June 10 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 31, 2020 linked to the worst performing of the Russell 2000 index, the Dow Jones industrial average and the Nasdaq-100 index, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each month, the notes will pay a contingent coupon at a rate of 10% to 12% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the determination date for that period.

After six months, the notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly determination date.

The payout at maturity will be par plus any coupon due unless any index ever closes below its 70% trigger level during the life of the notes, in which case investors will be fully exposed to the decline of the least performing index, subject to a maximum return of par.

Morgan Stanley & Co. LLC is the agent.

The notes will price on June 28.

The Cusip number is 61769HFY6.

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