New Issue: Morgan Stanley prices $494,000 contingent income notes linked to indexes

By Susanna Moon

Chicago, July 30 - Morgan Stanley priced $494,000 of contingent income notes due July 31, 2018 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annualized rate of 7.5% if each index closes at or above its 75% coupon barrier level on the determination date for that month.

The payout at maturity will be par plus the final contingent coupon unless the worse performing index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income notes
Underlying indexes:	Russell 2000 and Euro Stoxx 50
Amount:	$494,000
Maturity:	July 31, 2018
Coupon:	7.5% annualized for each month that both indexes close at or above coupon barriers on monthly determination date
Price:	Par
Payout at maturity:	Par plus any contingent coupon unless worse performing index finishes below trigger level, in which case fully exposure to any losses
Initial index levels:	1,048.51 for Russell and 2,741.96 for Euro Stoxx
Coupon barrier levels:	786.383 for Russell and 2,056.47 for Euro Stoxx; 75% of initial levels
Trigger levels:	524.255 for Russell and 1,370.98 for Euro Stoxx; 50% of initial levels
Pricing date:	July 26
Settlement date:	July 31
Agent:	Morgan Stanley & Co. LLC
Fees:	2.5%
Cusip:	61761JJL4

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