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Published on 3/5/2014 in the Prospect News Structured Products Daily.

Morgan Stanley plans contingent income autocallables tied to American

By Susanna Moon

Chicago, March 5 - Morgan Stanley plans to price contingent income autocallable securities due March 2015 linked to American Airlines Group Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10% if the stock closes at or above its 70% barrier level on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first three determination dates.

The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 70% barrier level, in which case investors will receive a number of American shares equal to par of $10.00 divided by the initial share price.

Morgan Stanley & Co. LLC is the agent.

The notes will price and settle in March.

The Cusip number is 61760S498.


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