Morgan Stanley plans five-year contingent income autocallables on ETFs

By Marisa Wong

Madison, Wis., Nov. 7 – Morgan Stanley plans to price contingent income autocallable securities due November 2019 linked to the worst performing of the Energy Select Sector SPDR fund and the SPDR S&P 500 ETF trust, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 7% if each fund closes at or above its downside threshold level, 75% of its initial share price, on the observation date for that quarter.

Following an initial one-year non-call period, the notes will be called at par plus the contingent coupon if each fund closes at or above its initial level on any quarterly call date.

The payout at maturity will be par plus the final coupon unless either fund finishes below its downside threshold level, in which case investors will be fully exposed to any losses of the worse performing fund.

Morgan Stanley & Co. LLC is the agent.

The notes will price and settle in November.

The Cusip number is 61764C671.

© 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.