Morgan Stanley plans contingent income autocallables on Alibaba, BofA

By Marisa Wong

Morgantown, W.Va., March 19 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due March 25, 2021 linked to the least performing of the American Depositary Shares of Alibaba Group Holding Ltd. and the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The notes will pay a contingent quarterly coupon at an annual rate of 11.25% if each stock closes at or above its 60% downside threshold on the related quarterly determination date.

The notes will be called at par if each stock closes at or above its initial level on any quarterly review date.

The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.

Morgan Stanley & Co. LLC is the agent.

The notes will price on March 20.

The Cusip number is 61768P454.

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