Morgan Stanley plans contingent income notes linked to two indexes

By Toni Weeks

San Luis Obispo, Calif., Feb. 3 - Morgan Stanley plans to price contingent income securities due Feb. 28, 2029 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 pay a fixed monthly coupon of 8% per year for the first three years. After that, the notes will pay a contingent monthly coupon of 8% if the closing level of each index is 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 each index finishes at or above its downside threshold level, 50% of the initial level, the payout at maturity will be par plus the 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 in the worst-performing index from its initial level.

The notes (Cusip: 61761JPB9) are expected to price Feb. 25 and settle Feb. 28.

Morgan Stanley & Co. LLC is the agent.

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