Morgan Stanley plans principal at risk notes linked to S&P 500

By Marisa Wong

Madison, Wis., July 2 - Morgan Stanley plans to price principal at risk securities due July 31, 2028 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 coupon at a rate of 8% per year if the index closes at or above the coupon barrier level - 75% of the initial level - on the determination date for that month. Otherwise, no coupon will be paid that month.

If the index finishes at or above 50% of the initial level, the payout at maturity will be par and, if the final level is also greater than or equal to the coupon barrier level, the contingent coupon. Otherwise, investors will receive par plus the index return, with full exposure to losses.

The notes (Cusip: 61761JJR1) will price July 26 and settle July 31.

Morgan Stanley & Co. LLC is the agent.

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