New Issue: Morgan Stanley prices $4.76 million contingent income notes linked to Russell, S&P 500

By Susanna Moon

Chicago, Feb. 27 - Morgan Stanley priced $4.76 million of contingent income securities due Feb. 28, 2029 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be fixed at 6.5% for the first five years. After that, the notes will pay a contingent monthly coupon at an annual rate of 6.5% if each index closes at or above its coupon barrier level, 50% of its initial level, on the observation date for that month.

If of each index finishes at or above its 50% barrier level, the payout at maturity will be par plus the coupon.

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

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying indexes:	Russell 2000, S&P 500
Amount:	$4,761,000
Maturity:	Feb. 28, 2029
Coupon:	6.5% initially; beginning in year six, 6.5% annualized contingent monthly payment if each index is at or above barrier level on observation date for that month
Price:	Par
Payout at maturity:	If each index finishes at or above its barrier level, par plus coupon; otherwise, full exposure to losses of worst performing index
Initial index levels:	1,173.946 for Russell, 1,845.12 for S&P
Barrier levels:	586.973 for Russell, 922.56 for S&P, 50% of initial levels
Pricing date:	Feb. 25
Settlement date:	Feb. 28
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JPG8

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