Morgan Stanley plans contingent income autocallables on salesforce.com

By Toni Weeks

San Luis Obispo, Calif., April 16 – Morgan Stanley plans to price contingent income autocallable securities due April 30, 2018 linked to the common stock of salesforce.com, inc., according to an FWP filing with the Securities and Exchange Commission.

If salesforce.com shares close at or above the downside threshold level, 75% of the initial price, on a quarterly determination date, the notes will pay a contingent payment of $0.22625 per $10 note for that quarter. The payment is equivalent to 9.05% per year.

If the closing price is greater than or equal to the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.

If the notes are not called and the final price is greater than or equal to the 75% downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will receive a number of shares of salesforce.com stock equal to $10 divided by the initial price or, at the issuer’s option, the cash value of those shares.

Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management as dealer.

The notes (Cusip: 61764V729) will price April 24 and settle April 29.

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