Morgan Stanley plans autocallables linked to UnitedHealth, Humana

By Angela McDaniels

Tacoma, Wash., April 25 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due May 5, 2022 linked to the lesser performing of the common stocks of UnitedHealth Group Inc. and Humana Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

If each stock closes at or above its downside threshold level, 70% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 9%. The exact rate will be set at pricing.

The notes will be called at par plus the contingent coupon if each stock closes at or above its call threshold level, 95% of its initial share price, on any quarterly determination date.

If the final share price of each stock is greater than or equal to its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price April 30.

The Cusip number is 61768D7F6.

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