Morgan Stanley plans callable contingent income securities on three indexes

By Devika Patel

Knoxville, Tenn., July 11 – Morgan Stanley Finance LLC plans to price callable contingent income securities due Aug. 2, 2032 linked to the lesser performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at an annual rate of 10% if each index closes at or above its coupon barrier level, 75% of its initial index level, on the observation date for that quarter.

The notes are callable at par on any quarterly determination date beginning on July 31, 2018.

If each index finishes at or above its 50% downside threshold level, the payout at maturity will be par plus the final contingent coupon, if any. If the final level of any index is less than the downside threshold level, investors will lose 1% for each 1% decline of the least-performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61768CMG9) are expected to price on July 26 and settle July 31.

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