Morgan Stanley plans contingent income autocallables tied to Tesla

By Marisa Wong

Madison, Wis., Sept. 4 – Morgan Stanley plans to price contingent income autocallable securities due Sept. 30, 2016 linked to Tesla Motors, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 11.25% if Tesla stock closes at or above the 70% downside threshold level on a determination date for that month.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial price on any quarterly determination date.

The payout at maturity will be par plus the contingent payment unless the stock finishes below its downside threshold level, in which case the investors will be fully exposed to the decline.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Sept. 25 and settle on Sept. 30.

The Cusip number is 61761JSV2.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.