Morgan Stanley plans contingent income autocallables on Weatherford

By Jennifer Chiou

New York, Nov. 3 – Morgan Stanley plans to price contingent income autocallable securities due Nov. 13, 2015 linked to the ordinary shares of Weatherford International plc, according to an FWP with the Securities and Exchange Commission.

If Weatherford shares close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 14.25%.

The notes will be called at par of $10 plus the contingent coupon if Weatherford shares close at or above the initial share price on any quarterly determination date other than the final determination date.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of Weatherford shares equal to $10 divided by the initial share price or, at the issuer’s option, a cash amount equal to the value of those shares.

The notes (Cusip: 61764C630) will price on Nov. 7 and settle on Nov. 13.

Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is a dealer.

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