Morgan Stanley plans contingent income autocallables linked to stocks

By Sarah Lizee

Olympia, Wash., July 2 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due July 17, 2023 linked to the worst performing of the common stocks of CVS Health Corp., Regions Financial Corp. and Occidental Petroleum Corp., according to an FWP filing with the Securities and Exchange Commission.

If each stock closes at or above its downside threshold level, 50% 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 14%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if each stock closes at or above its initial share price on any quarterly redemption determination date after one year.

If each stock finishes at or above 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 worst-performing stock’s final share price is less than the initial share price.

The notes will be guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price July 8.

The Cusip number is 61769HJW6.

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