Morgan Stanley plans 10% fixed income autocallables tied to LinkedIn

By Toni Weeks

San Luis Obispo, Calif., July 30 - Morgan Stanley plans to price 10% fixed income autocallable securities due August 2014 linked to the common stock of LinkedIn Corp., according to an FWP filing with the Securities and Exchange Commission.

Interest is payable quarterly.

If LinkedIn stock closes at or above the initial price on any of the first three quarterly determination dates, the notes will be automatically called at par plus the coupon.

If the notes are not called, the payout at maturity will be par plus the coupon unless the final share price is less than the downside threshold level, in which case investors will receive a number of LinkedIn shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares. The actual downside threshold level is expected to be 66% to 68% of the initial share price and will be determined at pricing.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.

The notes will price in July and settle in August.

The Cusip number is 61762P344.

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