Morgan Stanley plans contingent income autocallables linked to indexes

By Angela McDaniels

Tacoma, Wash., Oct. 5 – Morgan Stanley Finance LLC plans to price contingent income autocallable canon securities due Oct. 31, 2031 linked to the lesser performing of the Euro Stoxx 50 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes will pay a contingent coupon each month at an annual rate of 8% if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that month.

After five years, the notes will be automatically called at par plus the related contingent coupon if each index closes at or above its initial level on any quarterly redemption determination date.

If the final level of each index is greater than its respective threshold level, 66.6667% of its initial level, investors will receive a positive return of 1.5% for each 1% by which the final level of the lesser-performing index is greater than its threshold level. However, if the final level of either index is less than its respective threshold level, investors will lose 1.5% for each 1% by which the final level of the lesser-performing index is less than its threshold level.

Morgan Stanley & Co. LLC is the agent.

The notes will price Oct. 26.

The Cusip number is 61768CAN7.

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