Morgan Stanley plans contingent income notes linked to Russell, Stoxx

By Susanna Moon

Chicago, Dec. 31 – Morgan Stanley plans to price contingent income securities due Jan. 29, 2031 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

Interest will be fixed at 7% for the first five years, payable monthly. After that, the notes will pay a contingent monthly coupon at an annual rate of 7% if each index closes at or above its coupon barrier level, 50% of its initial level, on the determination date for that month.

The payout at maturity will be par plus the final contingent coupon unless either index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Jan. 26 and settle on Jan. 29.

The Cusip number is 61761JT41.

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