Morgan Stanley plans contingent income autocallables on Tesla Motors

By Jennifer Chiou

New York, March 31 – Morgan Stanley plans to price contingent income autocallable securities due April 17, 2017 linked to Tesla Motors, Inc. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 12.5% if the shares close at or above the 70% downside threshold level on the observation date for that month.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any quarterly determination date beginning on July 17, 2015.

The payout at maturity will be par plus the final coupon unless the shares finish below the 70% downside threshold level, in which case investors will receive a number of Tesla Motors shares equal to $1,000 divided by the initial price or, at the issuer’s option, the cash equivalent.

The notes (Cusip: 61761JXW4) will price on April 14 and settle on April 17.

Morgan Stanley & Co. LLC is the agent.

© 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.