Morgan Stanley plans contingent income autocallables tied to Amazon.com

By Susanna Moon

Chicago, Jan. 30 - Morgan Stanley plans to price contingent income autocallable securities due February 2013 linked to Amazon.com, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If Amazon.com stock closes at or above the 80% downside threshold level on a quarterly determination date, investors will receive a contingent payment of $0.20 to $0.275 for each $10.00 note. The exact payment will be set at pricing.

If the stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par plus the contingent payment.

If the notes are not called and the stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, the payout will be a number of Amazon.com shares equal to $10.00 divided by the initial share price or, at Morgan Stanley's option, the cash equivalent.

Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Smith Barney LLC will handle distribution.

The notes will price in February and settle in March.

The Cusip number is 61760T454.

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