New Issue: Morgan Stanley prices $3.98 million contingent income notes linked to Russell, S&P

By Susanna Moon

Chicago, Nov. 3 – Morgan Stanley priced $3.98 million of contingent income securities due Oct. 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.

Interest will be fixed at 7%, payable monthly, for five years. 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.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying indexes:	Russell 2000 and S&P 500
Amount:	$3,981,000
Maturity:	Oct. 30, 2030
Coupon:	7% annualized for five years, payable monthly; after that 7% for each month that each index closes at or above barrier level on the determination date for that month
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:	1,145.291 for Russell, 2,065.89 for S&P
Barrier levels:	50% of initial levels
Pricing date:	Oct. 27
Settlement date:	Oct. 30
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JM22

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