New Issue: Morgan Stanley prices $1.04 million contingent income notes linked to Russell 2000

By Toni Weeks

San Luis Obispo, Calif., March 28 - Morgan Stanley priced $1.04 million of contingent income securities due March 29, 2029 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a coupon of 7% per year if the index's closing level is at or above its respective coupon barrier level, 70% of its initial level, on the related observation date for that month. Otherwise, no coupon will be paid that month.

If the final index level is greater than or equal to the 50% downside threshold level, the payout will be par plus the final monthly coupon, if any.

If the index finishes below the downside threshold level, investors will be fully exposed to losses from the initial level.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying index:	Russell 2000
Amount:	$1,035,000
Maturity:	March 29, 2029
Coupon:	7% per year, payable monthly if index closes at or above coupon barrier level on observation date for that month; otherwise, no coupon will be paid that month
Price:	Par
Payout at maturity:	If final index level is at or above downside threshold level, par plus coupon, if any; if index finishes below downside threshold level, par plus index return, with full exposure to losses
Initial index level:	1,155.486
Coupon barrier level:	808.84, 70% of initial level
Downside threshold:	577.743, 50% of initial level
Pricing date:	March 26
Settlement date:	March 31
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JPK9

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