Morgan Stanley plans contingent income autocallables on American Airlines

By Jennifer Chiou

New York, Dec. 30 – Morgan Stanley plans to price contingent income autocallable securities due Jan. 20, 2017 linked to the common stock of American Airlines Group Inc., according to an FWP with the Securities and Exchange Commission.

If American Airlines stock closes at or above the downside threshold level, 70% of the initial share price, on a monthly observation date, the notes will pay a contingent payment of 14.5% per year.

If the closing share price is greater than or equal to the initial share price on any quarterly determination date beginning on April 20, 2015, the notes will be automatically redeemed at par plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the 70% downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will be fully exposed to the decline in the shares of American Airlines.

The notes (Cusip: 61761JVK2) will price on Jan. 14 and settle on Jan. 20.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.

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