Morgan Stanley plans contingent income autocallables linked to Russell

By Toni Weeks

San Diego, Jan. 18 - Morgan Stanley plans to price contingent income autocallable securities due February 2028 linked to the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon if the index closes at or above the 70% barrier level for that month. The contingent monthly coupon will be 7.5% for the first five years, 9% for years six through 10 and 13% after that until maturity.

If the index closes at or above the initial level on any quarterly review date after five years, the notes will be called at par plus the contingent coupon.

If the index finishes at or above the 75% barrier level, the payout at maturity will be par plus the contingent coupon.

If the index finishes below the 75% barrier level but at or above the downside threshold level - 50% of the initial index level - the payout will be par.

Otherwise, investors will be fully exposed to losses from the initial index level.

Morgan Stanley & Co. LLC is the agent.

The notes will price in January and settle three business days later in February.

The Cusip number is 61761JBQ1.

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