Morgan Stanley to price contingent income notes linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., Aug. 1 - Morgan Stanley plans to price contingent income securities due Aug. 31, 2020 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly payment of $8.3333 per $1,000 principal amount of notes, which is equivalent to 10% per year, if the index closes at or above the downside threshold level, 425, on the determination date for that month. Otherwise, no coupon will be paid that month.

If the final index level is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent monthly payment. If the final index level is less than the downside threshold level, investors will be fully exposed to the decline of the index from the initial level.

The notes are expected to price Aug. 28 and settle Aug. 31.

Morgan Stanley & Co. LLC is the agent.

The Cusip number is 617482W42.

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