Morgan Stanley plans contingent income autocallables tied to Netflix

By Susanna Moon

Chicago, Jan. 7 – Morgan Stanley plans to price contingent income autocallable securities due Jan. 17, 2017 linked to Netflix, Inc. shares, according to an FWP filed with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annual rate of 18% if Netflix stock closes at or above the coupon barrier level, 60% of the initial price, on a determination date for that quarter.

The notes will be redeemed at par of $1,000 plus the contingent payment if Netflix stock closes at or above its initial price on any of the first three determination dates.

If the stock finishes at or above the 60% trigger level, the payout at maturity will be par plus the contingent quarterly payment.

Otherwise, investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Jan. 8 and settle on Jan. 13.

The Cusip number is 61765U621.

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