Morgan Stanley plans contingent income autocallables on Under Armour

By Angela McDaniels

Tacoma, Wash., April 4 - Morgan Stanley plans to price contingent income autocallable securities due March 30, 2017 linked to the common stock of Under Armour, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Under Armour shares close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon that quarter at an annualized rate of 9%.

The notes will be called at par of $10 plus the contingent coupon if Under Armour shares close at or above the redemption threshold level on any of the first 11 quarterly determination dates. The redemption threshold level is 95% of the initial share price for the first through fourth determination dates, 90% of the initial share price for the fifth through eighth determination dates and 85% of the initial share price for the ninth through 11th determination dates.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, the payout will be a number of Under Armour shares equal to $10 divided by the initial share price or, at the issuer's option, an amount in cash equal to the value of those shares.

Morgan Stanley & Co. LLC is the agent.

The notes will price April 9 and settle April 14.

The Cusip number is 61760S787.

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