New Issue: Morgan Stanley prices $2.97 million contingent income notes linked to indexes

By Susanna Moon

Chicago, July 31 - Morgan Stanley priced $2.97 million of contingent income notes due July 31, 2028 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 7% for the first five years, payable monthly. After that, the notes will pay a contingent monthly coupon at an annualized rate of 7% if each index closes at or above its 50% barrier level on the determination date for that month.

The payout at maturity will be par plus the final contingent coupon unless the worse performing index finishes below the 50% barrier level, in which case investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying indexes:	Russell 2000 and S&P 500
Amount:	$2,967,000
Maturity:	July 31, 2028
Coupon:	7% annualized, payable monthly, for first five years; after that, 7% annualized for each month that both indexes close at or above coupon barriers on monthly determination date
Price:	Par
Payout at maturity:	Par plus any contingent coupon unless worse performing index finishes below trigger level, in which case fully exposure to any losses
Initial index levels:	1,048.51 for Russell and 1,691.65 for S&P
Barrier levels:	524.255 for Russell and 845.825 for S&P; 50% of initial levels
Pricing date:	July 26
Settlement date:	July 31
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JJQ3

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