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Published on 10/17/2012 in the Prospect News Structured Products Daily.

Morgan Stanley to sell contingent income autocallables on Euro Stoxx

By Marisa Wong

Madison, Wis., Oct. 17 - Morgan Stanley plans to price contingent income autocallable securities due October 2015 linked to the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

If the index closes at or above the barrier level, 70% of the initial level, on any quarterly determination date, the notes will pay a contingent coupon at an annualized rate of 7% to 9% for that quarter.

If the index closes at or above the initial level on any quarterly call date beginning in November 2013, the notes will be called at par plus the contingent coupon.

If the notes are not called and the index finishes at or above the barrier level, the payout at maturity will be par plus the final contingent coupon.

Otherwise, investors will be fully exposed to losses.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 6174823C6) will price in October and settle in November.


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