Morgan Stanley plans contingent income notes linked to Russell 2000

By Susanna Moon

Chicago, April 22 - Morgan Stanley plans to price contingent income securities due May 2028 linked to the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

If the index closes at or above the 72.5% coupon barrier level on a quarterly review date, the notes will pay a contingent coupon at an annualized rate of 8.5% for that quarter.

If the notes have not been called and the index finishes at or above the 55% downside threshold level, the payout at maturity will be par plus the coupon.

Otherwise, investors will be fully exposed to losses.

Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Smith Barney LLC as dealer.

The notes will price in April and settle in May.

The Cusip number is 61761JFQ7.

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