Morgan Stanley plans contingent income notes due 2028 on Russell, S&P

By Marisa Wong

Madison, Wis., April 9 - Morgan Stanley plans to price contingent income securities due April 28, 2028 linked to the worse performing of 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 7% per year for the first five years. After that, the notes will pay a contingent coupon of 7% per year if the closing value of each underlying index is at or above its respective coupon barrier level, 50% of the initial level, on the observation date for that month. Otherwise, no coupon will be paid that month.

If the final level of each index is greater than or equal to the 50% barrier level, the payout at maturity will be par plus the contingent monthly coupon.

If the final level of either index is less than the barrier level, investors will be fully exposed to the decline of the worse performing index from the initial level.

The notes (Cusip: 61761JFK0) will price April 26 and settle April 30.

Morgan Stanley & Co. LLC will be the agent.

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