Morgan Stanley to price contingent income autocallables linked to Nikkei 225, Euro Stoxx 50

By Toni Weeks

San Luis Obispo, Calif., Aug. 14 - Morgan Stanley plans to price contingent income autocallable securities due August 2018 linked to the worst performing of the Nikkei 225 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier level, 70% of its initial index level, on a quarterly determination date, investors will receive a 7% contingent coupon that quarter.

Beginning one year after issuance, the notes will be automatically redeemed at par plus the contingent coupon if both indexes close at or above their initial levels on any quarterly redemption determination date.

If the notes are not called and each index finishes at or above the 70% trigger level, the payout at maturity will be par plus the final contingent coupon. If either index finishes below the trigger level, investors will be fully exposed to the decline of the worst-performing index from its initial level.

The notes (Cusip: 61761JKS7) will price and settle in August.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.

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