Morgan Stanley plans contingent income autocallables on three stocks

By Devika Patel

Knoxville, Tenn., July 5 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due July 17, 2023 linked to 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.

The notes will be guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent quarterly payment at a 14% annual rate if each stock closes at or above its downside threshold level, 50% of its initial level, on the observation date for that quarter.

Then notes will be called at par plus any contingent coupon if the closing level of each stock is greater than or equal to its initial level on any quarterly redemption date beginning on July 8, 2020.

If each stock finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the worst performing stock from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61769HJW6) will price on July 8 and settle on July 15.

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