Morgan Stanley plans contingent income notes linked to Stoxx, Russell

By Angela McDaniels

Tacoma, Wash., April 25 – Morgan Stanley Finance LLC plans to price callable contingent income securities due June 1, 2022 linked to the lesser 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 be guaranteed by Morgan Stanley.

Every six months, the notes will pay a contingent coupon if each index closes at or above its downside threshold level, 70% of its initial level, on the observation date for that semiannual period. The contingent coupon rate is expected to be at least 8.45% per year and will be set at pricing.

Beginning Dec. 3, 2019, the notes will be callable at par on any interest payment date.

If the lesser-performing index finishes at or above its downside threshold level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the lesser-performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price May 24.

The Cusip number is 61768D7D1.

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