Morgan Stanley plans callable contingent income notes on indexes

By Sarah Lizee

Olympia, Wash., Aug. 28 – Morgan Stanley Finance LLC plans to price callable contingent income securities due Sept. 6, 2022 tied to the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a semiannual contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period.

The notes will be callable at par quarterly after six months.

If the lowest-performing index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus any coupon due. If the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Aug. 31.

The Cusip number is 61771BR97.

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