Morgan Stanley plans contingent income securities on Russell, S&P 500

By Devika Patel

Knoxville, Tenn., March 20 – Morgan Stanley Finance LLC plans to price contingent income securities due March 31, 2032 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to an 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes will pay a 7% annual coupon in the first five years. Beginning in April 2022, they will pay a contingent monthly coupon at an annual rate of 7% if each index closes at or above its coupon barrier level of 60% on the determination date for that month.

If each index finishes at or above its downside threshold level, 50% of the initial index level, the payout at maturity will be par plus the contingent coupon, if any. Otherwise, investors will lose 1% for each 1% decline of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61768CFT9) will price March 28 and settle March 31.

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