Morgan Stanley plans callable contingent income securities on three indexes

By Devika Patel

Knoxville, Tenn., Sept. 13 – Morgan Stanley Finance LLC plans to price callable contingent income securities due Sept. 19, 2024 linked to the least performing of the Nasdaq-100 index, the Russell 2000 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 quarter, the notes will pay a contingent coupon at an annual rate of at least 7.5% if each index closes at or above its coupon barrier level, 70% of its initial index level, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes are callable at par plus any coupon on any quarterly redemption date beginning on Sept. 21, 2020.

If each index finishes at or above its 60% downside threshold level, the payout at maturity will be par plus the final contingent coupon, if any. 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: 61769HRV9) are expected to price on Sept. 16 and settle Sept. 19.

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