Morgan Stanley plans 6% fixed, contingent income notes on indexes

By Susanna Moon

Chicago, April 9 – Morgan Stanley Finance LLC intends to issue contingent income securities due April 28, 2033 linked to the worse performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be fixed at 6% for the first five years. After that, the notes will pay a contingent quarterly coupon at an annual rate of 6% if each index closes at or above its 50% coupon threshold on the determination date for that quarter.

The payout at maturity will be par unless either index closes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on April 25 and settle on April 30.

The Cusip number is 61768CP50.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.