Morgan Stanley plans 8.5% contingent income autocalls tied to stocks

By Susanna Moon

Chicago, Nov. 14 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 3, 2019 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the common stocks of Applied Materials, Inc., Goodyear Tire & Rubber Co. and Illumina, Inc.

The notes will pay a contingent monthly coupon at an annual rate of 8.5% if each stock closes at or above its 50% downside threshold on the determination date for that month.

The notes will be called at par plus the contingent coupon if each stock closes at or above its redemption threshold on any determination date after six months.

The payout at maturity will be par plus the contingent coupon unless either stock finishes below its 50% downside threshold, in which case investors will lose 1% for each 1% decline in the worse performing stock.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the underwriter.

The notes will price on Nov. 27 and settle on Nov. 30.

The Cusip number is 61768CTR8.

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