Morgan Stanley plans contingent income autocalls on indexes, ETF

By Sarah Lizee

Olympia, Wash., Oct. 16 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Oct. 23, 2024 linked to the lesser performing of the Energy Select Sector SPDR fund, the Euro Stoxx 50 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 7.2% per year if each underlier closes at or above its coupon barrier level, 65% of its initial level, on the determination date for that quarter.

The notes will be automatically called at par if each underlier closes at or above its initial level on any quarterly determination date after one year.

The payout at maturity will be par unless either underlier finishes below its downside threshold, 55% of its initial level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Oct. 18.

The Cusip number is 61769HZF5.

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