Morgan Stanley eyes contingent income autocalls tied to Tesla

By Sarah Lizee

Olympia, Wash., Aug. 26 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Aug. 31, 2023 linked to the common stock of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If the shares close at or above the coupon threshold level, 50% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 19% to 21%.

The notes will be called at par plus the contingent coupon if the shares close at or above the call threshold, 100% of the stock’s initial price, on any quarterly determination date after six months.

If the final share price is greater than or equal to the downside threshold level, 50% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Aug. 27.

The Cusip number is 61771BR48.

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