New Issue: Morgan Stanley prices $543,000 contingent income notes linked to Russell, Stoxx

By Toni Weeks

San Luis Obispo, Calif., July 31 – Morgan Stanley priced $543,000 of contingent income securities due July 31, 2030 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 monthly fixed coupon of 7% for the first four years. After that, they will pay a contingent monthly coupon at an annual rate of 7% if each index closes at or above its coupon barrier level, 50% of its initial level, on the determination date for that month.

The payout at maturity will be par plus the final contingent coupon unless either index finishes below its 50% barrier level, in which case investors will be fully exposed to the decline of the worst-performing index.

The agent is Morgan Stanley & Co. LLC.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying indexes:	Russell 2000 and Euro Stoxx 50
Amount:	$543,000
Maturity:	July 31, 2030
Coupon:	7% for the first four years, payable monthly; after that, 7% annualized per month if each index closes at or above its barrier level on the determination date for that month
Price:	Par of $1,000
Payout at maturity:	Par plus the final contingent coupon if each index finishes at or above its 50% barrier; otherwise, full exposure to losses of worst-performing index
Initial levels:	1,224.599 for Russell, 3,554.11 for Stoxx
Barrier levels:	50% of initial levels
Pricing date:	July 28
Settlement date:	July 31
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JB65

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