Morgan Stanley eyes callable contingent income notes on three indexes

By Devika Patel

Knoxville, Tenn., July 6 – Morgan Stanley Finance LLC plans to price callable contingent income securities due July 27, 2023 linked to the lesser performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filed with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes will pay a contingent semiannual coupon at an annual rate of at least 10.5% if each index closes at or above its coupon barrier level, 70% of its initial index level, on the observation date for that period. The exact coupon will be set at pricing.

The notes are callable at par plus any coupon on any semiannual redemption date beginning on Jan. 28, 2021.

If each index finishes at or above its 70% barrier level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than the barrier level, investors will lose 1% for each 1% decline of the least-performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61771BTZ7) are expected to price on July 24 and settle July 29.

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