Morgan Stanley plans contingent income autocallables linked to Disney

By Susanna Moon

Chicago, Oct. 17 – Morgan Stanley plans to price contingent income autocallable securities due Oct. 27, 2017 linked to Walt Disney Co. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if Disney stock closes at or above the 80% barrier level on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the redemption threshold level on any of the first 11 determination dates.

The redemption threshold will be 105% of the initial share price for the first four determination dates, stepping up to 110% of the initial share price for the next four determination dates and to 115% of the initial share price for the final determination dates.

The payout at maturity will be par plus the contingent payment unless the stock finishes below its barrier level, in which case investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Oct. 24 and settle on Oct. 29.

The Cusip number is 61764C408.

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