Morgan Stanley plans contingent income autocallables on BofA stock

By Marisa Wong

Madison, Wis., May 3 - Morgan Stanley plans to price contingent income autocallable securities due May 2016 linked to Bank of America Corp. shares, according to an FWP with the Securities and Exchange Commission.

If Bank of America stock closes at or above the 80% downside threshold level on a quarterly determination date, the notes will pay a contingent quarterly coupon at a rate of 9.25% to 11.25% per year. Otherwise no coupon will be paid that quarter.

If the shares close at or above the initial price on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon.

If Bank of America stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will receive a number of shares of Bank of America stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

Morgan Stanley & Co. LLC is the agent.

The notes will price and settle in May.

The Cusip number is 61762E331.

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