Morgan Stanley to price trigger phoenix autocallables linked to Visa

By Angela McDaniels

Tacoma, Wash., May 9 - Morgan Stanley plans to price trigger phoenix autocallable optimization securities due May 17, 2017 linked to the class A common stock of Visa Inc., according to an FWP filing with the Securities and Exchange Commission.

If Visa stock closes at or above the trigger price - 70% of the initial share price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 7% to 9.5% per year. Otherwise, no coupon will be paid that month. The exact contingent coupon rate will be set at pricing.

Beginning May 13, 2013, the notes will be called at par of $10 plus the contingent coupon if Visa shares close at or above the initial price on a monthly observation date.

If the notes are not called and Visa 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.

The notes (Cusip: 61755S255) are expected to price May 11 and settle May 16.

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

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