Morgan Stanley plans 8.35% contingent income autocallables on Apple

New York, June 15 – Morgan Stanley Finance LLC plans to price 8.35% contingent income autocallable securities due June 25, 2021 linked to the common stock of Apple Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The notes will pay a contingent quarterly coupon at an annual rate of 8.4% if the stock closes at or above its 80% downside threshold on the determination date for that quarter.

The notes will be automatically called at par plus the contingent coupon if the stock closes at or above its redemption threshold price on any of the first 11 quarterly determination dates. The redemption threshold price is 105% of the initial share price on the first four determination dates, 110% of the initial price on determination dates five through eight and 115% of the initial price on the remaining three determination dates.

The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

The notes will price on June 22 and settle on June 27.

The Cusip number is 61768Q817.

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