Morgan Stanley plans contingent income autocallables tied to stocks

By Angela McDaniels

Tacoma, Wash., Dec. 16 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 22, 2021 linked to the least performing of the common stocks of Nike Inc., Amgen Inc. and State Street Corp., according to an FWP filing with the Securities and Exchange Commission.

If each stock closes at or above its downside threshold level, 65% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 16%. The exact rate will be set at pricing.

Beginning June 17, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date.

If the least-performing stock’s final share price is greater than or equal to 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 least-performing stock’s final share price is less than its initial share price.

The notes will be guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price Dec. 17.

The Cusip number is 61769H5L5.

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