Morgan Stanley plans contingent income autocallables on MetLife

By Marisa Wong

Madison, Wis., April 17 - Morgan Stanley plans to price contingent income autocallable securities due May 2016 linked to the common stock of MetLife, Inc., according to an FWP filing with the Securities and Exchange Commission.

If MetLife shares close at or above the downside threshold level, 80% of the initial share price, on any quarterly determination date, the notes will pay a contingent payment of $0.24 per $10 note for that quarter. The exact contingent payment will be set at pricing.

If the closing share price is greater than or equal to the initial share price on any of the first seven determination dates, the notes will be automatically redeemed at par of $10 plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, the payout will be a number of MetLife shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price and settle in April.

The Cusip number is 61760S829.

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