Morgan Stanley plans contingent income autocallables on Whole Foods

By Susanna Moon

Chicago, Aug. 7 - Morgan Stanley plans to price contingent income autocallable securities due August 2016 linked to Whole Foods Market, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If Whole Foods stock closes at or above 75% the barrier level on a quarterly review date, the notes will pay a contingent payment at an annual rate of 8% to 9% for that quarter. The exact contingent quarterly coupon will be set at pricing.

If the shares close at or above initial level on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock closes below the 75% trigger level, in which case the payout will be a number of Whole Foods shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.

The notes will price and settle in August.

The Cusip number is 61762P484.

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