Morgan Stanley plans contingent income securities on Russell, S&P 500

By Toni Weeks

San Luis Obispo, Calif., April 2 - Morgan Stanley plans to price contingent income securities due April 17, 2028 linked to the Russell 2000 index and 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 8.5% per year for the first three years. After that, the notes will pay a contingent coupon of 8.5% per year if the closing value of each underlying index is at or above its respective coupon barrier level, 75% of the initial level, on the observation 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, 50% of the initial index level, the payout at maturity will be par plus the contingent monthly coupon, if any.

If the final level of either index is less than the 50% downside threshold level, investors will be fully exposed to the decline of the worst-performing index from the initial level.

The notes (Cusip: 61761JES4) will price April 12 and settle April 17.

Morgan Stanley & Co. LLC will be the agent.

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