Morgan Stanley to price trigger phoenix autocallables linked to Time Warner

By Angela McDaniels

Tacoma, Wash., Sept. 24 – Morgan Stanley plans to price trigger phoenix autocallable optimization securities due March 31, 2017 linked to the common stock of Time Warner Inc., according to an FWP filing with the Securities and Exchange Commission.

If Time Warner stock closes at or above the trigger price, 75% of the initial share price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 8% to 10% per year. Otherwise, no coupon will be paid that quarter. The exact contingent coupon rate will be set at pricing.

If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and Time Warner shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

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

The notes will price Sept. 28 and settle Sept. 30.

The Cusip number is 61765R545.

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