New Issue: Morgan Stanley prices $2.52 million contingent income notes on Russell, S&P 500

By Susanna Moon

Chicago, Oct. 1 – Morgan Stanley priced $2.52 million of contingent income securities due Sept. 30, 2030 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 will be fixed at 7% for the first five years, payable monthly. After that, the notes will pay a contingent monthly coupon at an annual rate of 7% if each index closes at or above its 50% barrier level on the determination date for that month.

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

The agent is Morgan Stanley & Co. LLC.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying indexes:	Russell 2000 and S&P 500
Amount:	$2,523,000
Maturity:	Sept. 30, 2030
Coupon:	7% per year, for five years; after that, 7% annualized for each month that each index closes at or above barrier level on the determination date for that month; interest is payable monthly
Price:	Par of $1,000
Payout at maturity:	Par plus the final contingent coupon unless either index finishes below barrier level, in which case full exposure to any losses of the worst performing index
Initial levels:	1,122.789 for Russell, 1,931.34 for S&P
Barrier levels:	50% of initial levels
Pricing date:	Sept. 25
Settlement date:	Sept. 30
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JJ91

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