Morgan Stanley plans contingent income autocallables tied to Tesla

By Wendy Van Sickle

Columbus, Ohio, Feb. 24 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due March 4, 2020 linked to Tesla Motors, Inc. stock, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes will pay a contingent quarterly coupon at an annual rate of 13.75% if the shares close at or above the 70% downside threshold on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if Tesla shares close at or above the initial level on any of the first 11 determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the downside threshold, in which case investors will lose 1% for each 1% decline.

Morgan Stanley & Co. LLC is the underwriter.

The notes will price on Feb. 28 and settle on March 3.

The Cusip number is 61766V511.

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