Morgan Stanley plans contingent income autocallables on three indexes

By Kristen Daniels

New York, Jan. 31 – Morgan Stanley Finance LLC intends to price contingent income autocallable securities due Feb. 4, 2027 linked to the worst performing of the Euro Stoxx Select Dividend 30 index, the Nasdaq-100 index and the MSCI Emerging Markets index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each month, the notes will pay a contingent quarterly coupon at a rate of 13.08% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on the determination date for that quarter.

Beginning May 2, the notes will be automatically called at par plus the contingent coupon if the closing level of each index is greater than or equal to 95% of its initial level on any quarterly redemption date.

If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be exposed to the losses of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61768DJ71) will price on Feb. 1.

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