Morgan Stanley plans trigger phoenix autocallables tied to two indexes

By Susanna Moon

Chicago, Dec. 14 – Morgan Stanley plans to price trigger phoenix autocallable optimization securities due Dec. 21, 2018 linked to the worse performing of the S&P 500 index and the MSCI EAFE index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent coupon at an annual rate of 7.1% to 7.6% if each index closes at or above the coupon barrier level, 70% of the initial level, on an observation date for that quarter.

The notes will be called at par plus the contingent coupon if each index closes at or above the initial price on a quarterly observation date after six months.

The payout at maturity will be par plus the contingent coupon unless either index finishes below the 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.

Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.

The notes will price on Dec. 15 and settle on Dec. 18.

The Cusip number is 61765U498.

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