Morgan Stanley eyes autocallable contingent yield note on Stoxx Europe

By Devika Patel

Knoxville, Tenn., Oct. 21 – Morgan Stanley Finance LLC plans to price 0% trigger autocallable contingent yield notes due Oct. 31, 2019 linked to the Stoxx Europe 600 Banks index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes will pay a contingent quarterly coupon at an annual rate of 10% if the index closes at or above its downside threshold level, 69.75% to 74.75% of its initial level, on the observation date for that quarter. The exact downside threshold level will be set at pricing.

The notes will be called at par if the index closes at or above its initial level on any quarterly observation date beginning April 27, 2017.

The payout at maturity will be par plus the final coupon unless the index finishes below the downside threshold level, in which case investors will lose 1% for every 1% decline.

Morgan Stanley and UBS Financial Services Inc. are the agents.

The notes (Cusip: 61766F359) will price on Oct. 27 and settle on Oct. 31.

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