Morgan Stanley plans contingent income autocallables tied to indexes

By Devika Patel

Knoxville, Tenn., June 21 – Morgan Stanley Finance LLC intends to price contingent income autocallable securities due July 6, 2022 linked to the worst performing of the Russell 2000 index, the MSCI Emerging Markets index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent quarterly payment at a rate of 9.5% per year if each index closes at or above its coupon barrier level, 75% of its initial index level, on the determination date for that quarter.

Beginning Dec. 28, 2017, Morgan Stanley may call the notes at par of $1,000 plus the contingent coupon on any quarterly determination date if the closing level of each index is greater than or equal to its initial level.

If each index finishes at or above its downside threshold level, 65% of its initial index level, the payout at maturity will be par plus the final contingent coupon, if any.

Otherwise, investors will lose 1% for each 1% decline of the worst performing index.

Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 61768CLR6) will price on June 30 and settle July 6.

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