Morgan Stanley plans contingent income autocallables linked to stocks

By Angela McDaniels

Tacoma, Wash., June 11 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due June 30, 2022 linked to the worst performing of Amazon.com, Inc. common stock, Apple Inc. common stock, Netflix, Inc. common stock and Alphabet Inc. class C common stock, according to an FWP filing with the Securities and Exchange Commission.

If each stock closes at or above its downside threshold level, 50% of its initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of at least 11%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if each stock closes at or above its initial share price on any quarterly redemption determination date.

If each stock finishes at or above its 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 worst-performing stock’s final share price is less than the initial share price.

The notes will be guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price June 25.

The Cusip number is 61769HGU3.

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