Morgan Stanley plans callable contingent income buffered notes on indexes

By Sarah Lizee

Olympia, Wash., Jan. 10 – Morgan Stanley Finance LLC plans to price callable contingent income buffered securities due Jan. 15, 2021 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at the rate of 7.4% per year if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date that quarter.

If each index finishes at or above its buffer level, 80% of its initial level, the payout at maturity will be par plus the final coupon.

If any index finishes below its buffer level, investors will be exposed to the decline of the least-performing index beyond 20%.

Beginning July 16, the notes will be callable at par on any interest payment date.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Jan. 11.

The Cusip number is 61768DYV1.

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