Morgan Stanley plans contingent coupon autocallables on stock basket

By Wendy Van Sickle

Columbus, Ohio, July 8 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due July 31, 2018 linked to an equally weighted basket of the common stocks of United Continental Holdings, Inc., American Airlines Group Inc. and Hawaiian Holdings, Inc., according to an FWP filing with the Securities and Exchange Commission.

If the basket closes at or above the downside threshold level, 70% of its initial value, on a quarterly determination date, the notes will pay a contingent payment at an annual rate of 11% for that quarter.

If the basket closes at or above its initial value on any of quarterly determination date other than the final one, the notes will be redeemed at par plus the contingent payment.

If the basket 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 basket.

The agent is Morgan Stanley & Co. LLC.

The notes will price on July 26.

The Cusip number is 61761J3H0.

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