Morgan Stanley plans contingent income autocallables linked to Best Buy

By Marisa Wong

Madison, Wis., Aug. 1 – Morgan Stanley plans to price contingent income autocallable securities due August 2017 linked to Best Buy Co., Inc. 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 11.65% if Best Buy stock closes at or above the 65% downside threshold level on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any of the first 11 quarterly determination dates.

The payout at maturity will be par plus the contingent payment unless the stock finishes below its downside threshold level, in which case the payout will be a number of Best Buy shares equal to $10 divided by the initial share price or, at the issuer’s option, the cash equivalent.

Morgan Stanley & Co. LLC is the agent.

The notes will price and settle in August.

The Cusip number is 61758S302.

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