Morgan Stanley eyes contingent income autocallables on Lockheed Martin

By Devika Patel

Knoxville, Tenn., July 6 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due July 16, 2021 linked to the common stock of Lockheed Martin Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

If Lockheed Martin shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 8.7%.

The notes will be called at par of $10 plus the contingent coupon if Lockheed Martin shares close at or above the initial share price on any quarterly determination date beginning on Jan. 14, 2019.

If the final share price is greater than or equal to the 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 final share price is less than the initial share price.

Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 61768R328) will price on July 13 and settle on July 18.

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