New Issue: Morgan Stanley prices $3.34 million contingent income notes on Russell, S&P 500

By Susanna Moon

Chicago, Nov. 26 – Morgan Stanley priced $3.34 million of 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.

The coupon is fixed at 6.4% for the first five years, payable monthly. After that, the notes will pay a contingent month coupon at an annual rate of 6.4% if each index closes at or above its 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 barrier level, in which case investors will be fully exposed to any losses of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying indexes:	Russell 2000 and S&P 500
Amount:	$3,336,000
Maturity:	Nov. 26, 2029
Coupon:	6.4% for first five years, payable monthly; after that, 6.4% annualized for each month that both indexes close at or above coupon barrier level on the observation date for that month
Price:	Par
Payout at maturity:	Par plus coupon unless either index finishes below its barrier level, in which case investors will be fully exposed to any losses of the worst performing index
Initial index levels:	1,172.416 for Russell and 2,063.50 for S&P
Barrier levels:	586.208 for Russell and 1,031.75 for S&P; 50% of initial levels
Pricing date:	Nov. 21
Settlement date:	Nov. 26
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JUG2

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