Morgan Stanley plans trigger callable contingent yield notes on indexes

By Sarah Lizee

Olympia, Wash., Aug. 26 – Morgan Stanley Finance LLC plans to price trigger callable contingent yield notes with daily coupon observation due Aug. 31, 2023 linked to the worst performing of the Euro Stoxx 50 index, 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 an annual rate of 11% if each index closes at or above its coupon barrier level, 70% of its initial level, on every day that quarter.

The notes will be callable at par of $10 plus any coupon on any quarterly observation date other than the final one.

If the notes are not called and each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus any final coupon. Otherwise, investors will lose 1% for every 1% decline of the least-performing index.

UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.

The notes will price on Aug. 27.

The Cusip number is 61771D258.

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