Morgan Stanley plans 8% contingent income autocalls tied to JPMorgan

By Susanna Moon

Chicago, Oct. 27 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Nov. 6, 2020 linked to the common stock of JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8% if the stock closes at or above the 80% downside threshold 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 redemption threshold on any of the first 11 determination dates. The call level will be 105% of the initial share price for the first four determination dates, stepping up to 110% of the initial share price for the next four determination dates and to 115% of the initial share price for the final three determination dates.

The payout at maturity will be par plus the final coupon unless the stock finishes below its 80% downside threshold, in which case investors will lose 1% for each 1% decline of the stock.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the underwriter.

The notes will price on Nov. 3.

The Cusip number is 61768J789.

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