Morgan Stanley plans contingent income autocallable securities on two stocks

By Wendy Van Sickle

Columbus, Ohio, July 8 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due July 31, 2019 linked to Amazon.com, Inc. and Netflix, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If each stock closes at or above the downside threshold level, 60% of its initial price, on a quarterly determination date, the notes will pay a contingent payment at an annual rate of 16% for that quarter.

If each stock closes at or above its initial price on any of quarterly determination date beginning Jan. 31, 2017, the notes will be redeemed at par plus the contingent payment.

If each stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment.

Otherwise, investors will be fully exposed to any losses of the worse-performing stock.

The agent is Morgan Stanley & Co. LLC.

The notes will price on July 26.

The Cusip number is 61766BBM2.

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