Morgan Stanley plans contingent income autocallables tied to gold ETF

By Toni Weeks

San Luis Obispo, Calif., April 11 - Morgan Stanley plans to price contingent income autocallable securities due April 2015 linked to the Market Vectors Gold Miners exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent coupon at the rate of 11.1% per year if the index closes at or above its downside threshold level, 75% of its initial level, on any quarterly observation date.

The notes will be redeemed at par plus the contingent coupon if the index closes at or above its initial level on any of the first three quarterly determination dates.

If the notes are not called and the final index level is greater than or equal to the 75% downside threshold level, the payout at maturity will be par plus the final coupon.

If the final index level is less than the downside threshold level, investors will be fully exposed to the index's decline from its initial level.

Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Wealth Management will handle distribution.

The notes will price and settle in April.

The Cusip number is 61760S803.

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