Morgan Stanley to price autocallables linked to Energy Select ETF

By Angela McDaniels

Tacoma, Wash., Nov. 7 – Morgan Stanley plans to price 0% autocallable securities due Dec. 5, 2018 linked to the Energy Select Sector SPDR Fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be redeemed at par of $10 plus a call premium if the fund closes at or above the initial share price on Dec. 5, 2017 or June 5, 2018. The call premium is expected to be 8% to 9% per year and will be set at pricing.

If the fund finishes at or above its initial share price, the payout at maturity will be par plus 16% to 18%. Investors will receive par if the fund falls by up to 10% and will lose 1% for every 1% that it may decline beyond 10%.

Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the agents.

The notes will price Nov. 30.

The Cusip number is 61761JZ44.

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