Morgan Stanley plans contingent income autocallables on Valero Energy

By Devika Patel

Knoxville, Tenn., Jan. 8 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Jan. 15, 2021 linked to the common stock of Valero Energy Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

If Valero shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 8.25%.

The notes will be called at par of $10 plus the contingent coupon if Valero shares close at or above the initial share price on any of the first 11 determination dates, beginning on April 12, 2018.

If the final share price is greater than or equal to the 80% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 61768M261) will price on Jan. 12 and settle on Jan. 18.

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