Morgan Stanley plans contingent income autocallables linked to Gilead

By Susanna Moon

Chicago, June 27 – Morgan Stanley plans to price contingent income autocallable securities due July 2017 linked to Gilead Sciences, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8.25% if Gilead stock closes at or above the 75% barrier level on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if the stock close at or above its level on any of the first 11 determination dates.

If the notes are not called and Gilead stock finishes at or above the 75% barrier level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Gilead stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

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

The notes will price and settle in July.

The Cusip number is 61761S612.

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