Morgan Stanley plans contingent income notes tied to two indexes

By Susanna Moon

Chicago, April 29 - Morgan Stanley plans to price contingent income securities due May 30, 2028 linked to the worse performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 9% for the first three years, payable monthly. After that, the notes will pay a contingent monthly payment at an annualized rate of 9% if each underlying index closes at or above its respective coupon barrier level, 75% of the initial level, on the observation date for that month.

If each index finishes at or above the downside threshold level, 50% of the initial index level, the payout at maturity will be par plus the contingent monthly coupon.

Otherwise, investors will be fully exposed to any losses of the worst performing index.

Morgan Stanley & Co. LLC will be the agent.

The notes will price on May 24 and settle on May 30.

The Cusip number is 61761JGA1.

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