New Issue: Morgan Stanley sells $1.34 million contingent income autocallables on Russell, Euro Stoxx

By Toni Weeks

San Luis Obispo, Calif., May 29 - Morgan Stanley priced $1.34 million of contingent income autocallable securities due May 31, 2033 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.

If each index closes at or above its coupon barrier level, 75% of its initial index level, on a monthly determination date, investors will receive a contingent coupon of 10% that month.

Beginning five years after issuance, the notes will be automatically redeemed at par plus the contingent coupon if both indexes close at or above their initial levels on any quarterly redemption determination date.

If the notes are not called and each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If either index finishes below 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.

Issuer:	Morgan Stanley
Issue:	Contingent income autocallable securities
Underlying indexes:	Russell 2000 and Euro Stoxx 50
Amount:	$1,336,000
Maturity:	May 31, 2033
Contingent coupon:	10% per year, payable monthly if each index closes at or above 75% of initial index level on monthly determination date
Price:	Par
Payout at maturity:	If each index finishes at or above its 50% downside threshold level, par plus contingent coupon, if any; otherwise full exposure to decline of worst-performing index
Call:	At par plus contingent payment if both indexes close at or above their initial levels on any quarterly redemption determination date beginning May 30, 2018
Initial levels:	984.28 for Russell and 2,764.29 for Euro Stoxx
Coupon barrier levels:	738.21 for Russell and 2,073.218 for Euro Stoxx, 75% of initial levels
Downside threshold levels:	492.14 for Russell and 1,382.145 for Euro Stoxx, 50% of initial levels
Pricing date:	May 24
Settlement date:	May 30
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JGC7

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