Morgan Stanley eyes contingent income buffered autocalls on two ETFs

By Sarah Lizee

Olympia, Wash., Oct. 25 – Morgan Stanley Finance LLC plans to price contingent income buffered autocallable securities due Nov. 2, 2022 linked to the lesser performing of the SPDR S&P Oil & Gas Exploration & Production ETF and VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each month, the notes will pay a contingent coupon at the rate of 10% to 12% per year if each underlier closes at or above its coupon barrier, 72% of its initial level, on the determination date for that month.

Following the initial six month non-call period, the notes will be automatically called at par if each underlier closes at or above its initial level on any monthly determination date.

The payout at maturity will be par unless either underlier finishes below its 70% buffer level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines beyond 30%.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Oct. 28.

The Cusip number is 61769HYM1.

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