Morgan Stanley plans callable contingent income securities linked to indexes

By Sarah Lizee

Olympia, Wash., Jan. 17 – Morgan Stanley Finance LLC plans to price callable contingent income securities due Jan. 26, 2023 linked to the MSCI Emerging Markets index, the Russell 2000 index and the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 9% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.

If the lowest-performing index finishes at or above its knock-in level, 54% of its initial level, the payout at maturity will be par plus the final coupon, if any. If the lowest-performing index finishes below its knock-in level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.

Beginning July 24, the notes will be callable at par on any interest payment date.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Jan. 21.

The Cusip number is 61770FDW3.

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