Morgan Stanley plans contingent income autocallables tied to Alibaba

By Devika Patel

Knoxville, Tenn., Sept. 1 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Sept. 11, 2020 linked to Alibaba Group Holding Ltd. American Depositary 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 9.25% if the ADS close at or above the downside threshold level, 70% of the initial level, on the review date for that quarter.

The notes will be called at par plus the coupon if the ADS close at or above the initial level on any of the first 11 determination dates beginning Dec. 8, 2017.

The payout at maturity will be par plus the final coupon unless Alibaba ADS finish below the 70% downside threshold level, in which case investors will lose 1% for each 1% decline of the ADS from the initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61766X889) will price Sept. 8 and settle on Sept. 13.

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