Morgan Stanley plans contingent income securities on S&P 500

By Marisa Wong

Madison, Wis., Nov. 1 - Morgan Stanley plans to price contingent income securities due Nov. 16, 2022 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly payment of 7% per year, or $5.8333 per $1,000 principal amount of notes, if the index closes at or above the downside threshold level of 790 on the determination date for that month. Otherwise, no coupon will be paid that month.

If the final index level is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent monthly payment. If the final index level is less than the downside threshold level, investors will be fully exposed to the decline of the index from the initial level.

The notes (Cusip: 6174823K8) will price on Nov. 13 and settle on Nov. 16.

Morgan Stanley & Co. LLC will be the agent.

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