New Issue: Morgan Stanley prices $1.8 million contingent income notes on indexes

By Marisa Wong

Morgantown, W.Va., Dec. 9 – Morgan Stanley priced $1.8 million of contingent income securities due Nov. 29, 2030 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a fixed coupon of 7% per year for the first five years. After that, the notes will pay a contingent coupon at a rate of 7% per year if each index closes at or above its 50% barrier level on an applicable observation date. Interest is payable monthly.

The payout at maturity will be par plus any 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:	S&P 500 index and Russell 2000 index
Amount:	$1,798,000
Maturity:	Nov. 29, 2030
Coupon:	Fixed monthly coupons at 7% per year for first five years; then payable monthly at 7% per year if both indexes close at or above barrier levels on monthly determination date
Price:	Par of $1,000
Payout at maturity:	Par plus any contingent coupon unless either index finishes below barrier level, in which case full exposure to any losses of the worst performing index
Initial levels:	1,188.814 for Russell and 2,089.14 for S&P
Barrier levels:	594.407 for Russell and 1,044.57 for S&P; 50% of initial levels
Pricing date:	Nov. 24
Settlement date:	Nov. 30
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JP45

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