Morgan Stanley plans contingent income notes linked to two indexes

By Angela McDaniels

Tacoma, Wash., March 3 - Morgan Stanley plans to price contingent income securities due March 29, 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 interest rate will be 7.5% for the first four years, payable monthly. Beginning in April 2018, the notes will pay a contingent monthly coupon at an annual rate of 7.5% if each index close at or above its respective coupon barrier level, 75% of its initial level, on the 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 its 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 of the worst-performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price March 26 and settle March 31.

The Cusip number is 61761JPN3.

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