Morgan Stanley plans callable contingent income notes on three indexes

By Sarah Lizee

Olympia, Wash., Oct. 18 – Morgan Stanley Finance LLC plans to price callable contingent income securities due Oct. 27, 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 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon of 6% per annum for the first year if each index closes at or above its 70% coupon barrier on the observation date for that month. The contingent coupon will increase to 6.5% per year on the second year, to 7% on the third year, to 7.5% on the fourth year and to 8% in the last year.

The notes are callable at par on any quarterly redemption date beginning on Oct. 29, 2019.

The payout at maturity will be par unless any index finishes below its 55% trigger level, in which case investors will lose 1% for each 1% decline of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Oct. 24 and settle on Oct. 29.

The Cusip number is 61768DJC0.

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