Morgan Stanley plans step-down trigger autocallables on oil & gas ETF

By Marisa Wong

Morgantown, W.Va., Jan. 13 – Morgan Stanley Finance LLC plans to price 0% step-down trigger autocallable notes due Jan. 24, 2020 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The notes will be automatically called at par of $10 plus a call premium – expected to be 9% to 10% per year – if the fund closes at or above its call threshold level on any annual observation date. The call threshold level will be equal to the initial fund level for every observation date except for the final observation date, Jan. 22, 2020. For the final observation date, the call threshold level will be 60% of the initial level.

If the notes are not automatically called, then the final level of the fund will be less than 60% of the initial level, and investors will be exposed to the decline of the fund from its initial level.

Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.

The notes will price on Jan. 27.

The Cusip number is 61766V180.

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