Morgan Stanley plans contingent income autocallables on Goldman

By Jennifer Chiou

New York, Dec. 13 - Morgan Stanley plans to price contingent income autocallable securities due December 2015 linked to Goldman Sachs Group, Inc. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annualized rate of 8.25% to 9.75% if Goldman Sachs stock closes at or above the 75% barrier level on the determination date for that quarter.

If the shares close at or above the initial level on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon.

If Goldman Sachs stock finishes at or above the barrier level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will be fully exposed to any losses and will receive the equivalent in shares or, at the issuer's option, cash.

The notes (Cusip: 61761M151) are expected to price and settle in December.

Morgan Stanley & Co. LLC will be the agent.

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