Morgan Stanley plans contingent income notes linked to indexes

By Susanna Moon

Chicago, Nov. 4 – Morgan Stanley plans to price contingent income securities due Nov. 26, 2029 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.

Interest will be fixed at 7.5% for the first five years, payable monthly. After that, the notes will pay a contingent monthly coupon at an annual rate of 6.4% if each index closes at or above its coupon barrier level, 50% of its initial level, on the observation date for that month.

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

Morgan Stanley & Co. LLC is the agent.

The notes will price on Nov. 21 and settle on Nov. 26.

The Cusip number is 61761JUG2.

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