Morgan Stanley plans to price contingent income securities on indexes

By Sarah Lizee

Olympia, Wash., Jan. 7 – Morgan Stanley Finance LLC plans to price contingent income securities due Feb. 1, 2029 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

For the first five years, the notes will pay a quarterly fixed coupon at an annual rate of 7%. After that, the notes will pay a contingent quarterly coupon of 7% per annum 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 index finishes below its 65% trigger level, in which case investors will lose 1% for each 1% decline of the worst performing index.

The notes will price on Jan. 28.

The Cusip number is 61768DXH3.

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