Morgan Stanley plans 6.25% contingent income notes on Russell, S&P

By Susanna Moon

Chicago, Oct. 24 – Morgan Stanley Finance LLC plans to price contingent income securities due Oct. 31, 2033 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filed with the Securities and Exchange Commission.

Interest will be fixed at 6.25% for the first five years. After that, the notes will pay a contingent quarterly coupon at an annual rate of 6.25%if each index closes at or above its 65% coupon barrier on the observation date for that quarter.

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

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Oct. 26.

The Cusip number is 61768DGD1.

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