Morgan Stanley plans contingent income securities tied to indexes

By Jennifer Chiou

New York, Dec. 3 - Morgan Stanley plans to price contingent income securities due Dec. 26, 2028 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly. The interest rate will be 8% for the first four years. In years five through 15, the notes will pay a contingent monthly coupon at the rate of 8% per year if each index closes at or above its respective coupon barrier level, 75% of its initial level, on the related observation date for that month. Otherwise, no coupon will be paid that month.

If the final level of each index is greater than or equal to its downside threshold level, 50% of the initial level, the payout at maturity will be par. Investors will receive the final monthly coupon if the final level is at or above the coupon barrier level.

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.

The notes (Cusip: 61761JNE5) are expected to price on Dec. 20 and settle on Dec. 26.

Morgan Stanley & Co. LLC is the agent.

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