Morgan Stanley plans contingent income notes on Russell 2000, S&P 500

By Marisa Wong

Madison, Wis., Oct. 1 - Morgan Stanley plans to price contingent income securities due Oct. 31, 2028 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.

Interest is fixed at 8% for the first three years and is payable monthly. After that, the notes will pay a contingent monthly coupon at an annual rate 8% if each index closes at or above its respective barrier level, 75% of its initial level, on the related observation date for that month.

If the final level of each index is greater than or equal to its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final quarterly coupon, if any. If the final level of either index is less than its downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price Oct. 28 and settle Oct. 31.

The Cusip number is 61761JMB2.

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