Morgan Stanley plans contingent income autocallables tied to Goldman

By Marisa Wong

Madison, Wis., Feb. 27 - Morgan Stanley plans to price contingent income autocallable securities due March 2015 linked to Goldman Sachs Group, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If Goldman Sachs stock closes at or above the 70% downside threshold level on a quarterly determination date, investors will receive a contingent payment of $0.2375 to $0.2875 for each $10.00 note. The exact payment will be set at pricing.

If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par plus the contingent payment.

If the notes are not called and the stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, the payout will be a number of Goldman Sachs shares equal to $10.00 divided by the initial share price or, at Morgan Stanley's option, the cash equivalent.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61760T496) will price in February and settle in March.

© 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.