Morgan Stanley plans 15-year contingent income notes tied to Russell

By Toni Weeks

San Luis Obispo, Calif., Feb. 3 - Morgan Stanley plans to price contingent income securities due Feb. 28, 2029 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a monthly coupon of 7% per year if the closing level of the index is at or above its coupon barrier level, 65% of its initial level, on the related observation date for that month. Otherwise, no coupon will be paid that month.

If the final index value is greater than or equal to its downside threshold level, 50% of the initial level, the payout at maturity will be par plus the coupon, if any. If the final index level is less than the downside threshold level, investors will be fully exposed to the decline in the index from its initial level.

The notes (Cusip: 61761JPF0) are expected to price Feb. 25 and settle Feb. 28.

Morgan Stanley & Co. LLC is the agent.

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