Morgan Stanley plans contingent income autocallable notes on stocks

By Sarah Lizee

Olympia, Wash., Dec. 5 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 9, 2022 linked to the worst performing of the common stocks of JPMorgan Chase & Co., Ulta Beauty, Inc., Halliburton Co. and Walmart Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

If each stock closes at or above its downside threshold level, 60% of its initial share price, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annualized rate of 19.75%.

The notes will be called at par plus the contingent coupon if each stock closes at or above 90% of its initial share price on any quarterly determination date, starting March 6, 2020.

If each stock’s final share price is greater than or equal to its 60% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Dec. 6.

The Cusip number is 61769H3H6.

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