Morgan Stanley plans contingent income notes on S&P 500, Euro Stoxx 50

By Toni Weeks

San Luis Obispo, Calif., Aug. 1 - Morgan Stanley plans to price contingent income securities due Aug. 30, 2023 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annualized rate of 8.5% if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that month. Otherwise, no coupon will be paid that month.

If the final level of each index is greater than or equal to 50% of its initial level, the payout at maturity will be par plus the last contingent monthly coupon, if any. Otherwise, investors will be fully exposed to losses from the initial index level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61761JKM0) will price Aug. 27 and settle Aug. 30.

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