Morgan Stanley plans callable contingent income notes on three indexes

By Devika Patel

Knoxville, Tenn., Sept. 28 – Morgan Stanley Finance LLC plans to price callable contingent income securities due Oct. 24, 2023 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filed with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each month, the notes will pay a contingent coupon if each index closes at or above its coupon barrier level, 70% of its initial index level, on the observation date for that month. The contingent coupon will be paid at an annual rate of 6% up to but excluding Oct. 24, 2019; at a rate of 7% from and including Oct. 24, 2019 to but excluding Oct. 22, 2020; at a rate of 8% from and including Oct. 24, 2020 to but excluding Oct. 22, 2021; at a rate of 9% from and including Oct. 22, 2021 to but excluding Oct. 24, 2022; and at a rate of 10% from and including Oct. 24, 2022 to but excluding the maturity date.

The notes are callable at par on any quarterly redemption date beginning on Oct. 24, 2019.

If each index finishes at or above its 70% downside threshold level, the payout at maturity will be par plus the final contingent coupon. 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: 61768DFG5) are expected to price on Oct. 19 and settle Oct. 24.

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