Morgan Stanley plans contingent income notes tied to Russell, S&P 500

By Marisa Wong

Morgantown, W.Va., Oct. 9 – Morgan Stanley plans to price contingent income participation securities due Oct. 30, 2030 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

For the first five years, the notes will pay a fixed monthly coupon at a rate of 7% per year. After that, the notes will pay a contingent monthly coupon at the rate of 7% per year if each index closes at or above its barrier level, 50% of its initial level, on the determination date for that month.

The payout at maturity will be par plus the final contingent coupon if each index finishes at or above its barrier level.

Otherwise, investors will be fully exposed to any losses of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price Oct. 27 and settle Oct. 30.

The Cusip number is 61761JM22.

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