Morgan Stanley to price lock-in securities linked to Euro Stoxx index

Chicago, Feb. 4 – Morgan Stanley Finance LLC plans to price contingent minimum repayment lock-in securities due Sept. 3, 2024 linked to the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes provide a minimum payout at maturity that starts at 100% of par of $10 principal amount and will increase if a lock-in event occurs. A lock-in event occurs if the index’s closing level on any annual observation date is greater than the initial index level and the highest closing index level achieved on any previous observation date.

If a lock-in event occurs, the minimum payment at maturity will increase by an amount reflecting 100% of the percentage appreciation in the index’s closing level on the relevant observation date relative to the initial index level or the higher index closing level achieved on a prior observation date, even if the index has depreciated on subsequent annual observation dates or the valuation date.

However, the occurrence of a lock-in event will not necessarily increase the payment at maturity, because investors will receive at maturity only the greater of the final lock-in amount and the upside payment, and so the final lock-in amount will not be combined with the upside payment.

Payout at maturity

If the final index level is greater than the initial index level, the payout at maturity will be the greater of (a) par plus the index return and (b) the final lock-in amount.

If the final index level is less than or equal to the initial index level, the payout will be the greater of (a) par times the quotient of the final index level divided by the initial index level and (b) the final lock-in amount.

The final lock-in amount will be the greater of (a) $10.00 multiplied by the lock-in payment factor and (b) $10.

The lock-in payment factor is the quotient of the highest closing level of the index achieved on any annual observation date divided by the initial index level.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price Feb. 28.

The Cusip number is 61768X127.

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