Morgan Stanley plans contingent income autocallables on Coach

By Marisa Wong

Madison, Wis., May 3 - Morgan Stanley plans to price contingent income autocallable securities due May 2014 linked to Coach, Inc. shares, according to an FWP with the Securities and Exchange Commission.

If Coach stock closes at or above the 75% downside threshold level on a quarterly determination date, the notes will pay a contingent quarterly coupon at a rate of 8.55% to 10.55% per year. Otherwise no coupon will be paid that quarter.

If the shares close at or above the initial price on any of the first three quarterly determination dates, the notes will be called at par plus the contingent coupon.

If Coach stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will receive a number of shares of Coach stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

Morgan Stanley & Co. LLC is the agent.

The notes will price and settle in May.

The Cusip number is 61762E323.

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