Morgan Stanley plans contingent income notes tied to Russell, Euro Stoxx with 9% initial rate

By Angela McDaniels

Tacoma, Wash., July 3 - Morgan Stanley plans to price contingent income securities due July 31, 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.

The notes will carry a fixed coupon of 9% for the first three years. After that, the notes will pay a contingent monthly coupon at the rate of 9% 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 its initial level, the payout at maturity will be par plus the final monthly 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 July 26 and settle July 31.

The Cusip number is 61761JJK6.

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