Morgan Stanley plans contingent income autocallables on Under Armour

By Tali Rackner

Minneapolis, Jan. 9 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Jan. 22, 2021 linked to the class A common stock of Under Armour, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

If Under Armour shares close at or above the downside threshold level, 50% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of between 10% and 11%. The exact coupon will be set at pricing.

The notes are noncallable for six months. Beginning July 19, 2018, they will be called at par of $1,000 plus the contingent coupon if Under Armour shares close at or above the initial share price on any determination dates.

If the final share price is greater than or equal to the 50% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes are expected to price on Jan. 19 and settle on Jan. 22.

The Cusip number is 61768CYA9.

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