Morgan Stanley plans contingent income autocallables tied to Euro Stoxx

By Angela McDaniels

Tacoma, Wash., April 4 - Morgan Stanley plans to price contingent income autocallable securities due April 2017 linked to the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

Each year, the notes will pay a 5.4% contingent coupon - plus any previously unpaid contingent annual coupons from any prior observation dates - if the index closes at or above its barrier level, 80% of its initial level, on the observation date for that year. If the contingent annual coupon is not paid on any coupon payment date, that unpaid coupon will be paid on a later coupon payment date but only if the index's closing level on that later observation date is greater than or equal to the barrier level.

Beginning in April 2015, the notes will be redeemed at par plus the contingent coupon for that year plus any previously unpaid contingent annual coupons if the index closes at or above its initial level on any annual redemption determination date.

If the notes are not called and the final index level is greater than or equal to the downside threshold level, 70% of the initial level, the payout at maturity will be par plus, if the final level is also greater than or equal to the barrier level, the contingent coupon for that year plus any previously unpaid contingent annual coupons.

If the final index level is less than the downside threshold level, investors will be fully exposed to the index's decline from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price and settle in April.

The Cusip number is 61761JQD4.

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