Morgan Stanley plans contingent income autocallables linked to indexes

By Angela McDaniels

Tacoma, Wash., April 3 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due April 28, 2032 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Interest will be payable quarterly. For the first three years, the interest rate will be fixed at 8.5% per year. In years four through 15, if each index closes at or above its initial level on the observation date for that quarter, the notes will pay a contingent coupon at the rate of 8.5% per year plus any previously unpaid contingent quarterly coupons for any prior observation dates.

After five and a half years, the notes will be automatically called at par plus the related contingent coupon if each index closes at or above its initial level on any quarterly redemption determination date.

The payout at maturity will be par plus any coupon due unless the final level of any index is less than its threshold level, 50% of its initial level, in which case investors will lose 1% for each 1% that the least-performing index decline from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price April 25.

The Cusip number is 61768CHA8.

© 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.