Morgan Stanley plans contingent income notes on Euro Stoxx, Russell

By Angela McDaniels

Tacoma, Wash., May 31 - Morgan Stanley plans to price contingent income securities due June 28, 2028 linked to 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 7.1% for the first five years. In years six through 15, the notes will pay a coupon at the rate of 7.1% per year if each index closes at or above its barrier level on the observation date for that month. Otherwise, no coupon will be paid that month. The barrier levels will be 50% of the indexes' initial index levels.

The payout at maturity will be par plus the final coupon unless either index finishes below its barrier level, in which case investors will lose 1% for every 1% that the worst-performing index's final level is below its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price June 25 and settle June 28.

The Cusip number is 61761JGX1.

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