Morgan Stanley plans contingent income autocallables on Transocean

By Marisa Wong

Madison, Wis., Feb. 14 - Morgan Stanley plans to price contingent income autocallable securities due March 2013 linked to Transocean Ltd. shares, according to an FWP filing with the Securities and Exchange Commission.

If Transocean stock closes at or above the 75% downside threshold level on a quarterly determination date, investors will receive a contingent payment of $0.2625 to $0.3625 for each $10.00 note. The exact payment will be set at pricing.

If the stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par plus the contingent payment.

If the notes are not called and the stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, the payout will be a number of Transocean shares equal to $10.00 divided by the initial share price or, at Morgan Stanley's option, the cash equivalent.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61760T470) will price in February and settle in March.

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