Morgan Stanley to price contingent income securities linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Aug. 1 - Morgan Stanley plans to price contingent income securities due Aug. 30, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent monthly coupon at the rate of 7.75% per year if the index closes at or above the coupon barrier level, 75% of the initial level, on the related observation date for that month. Otherwise, no coupon will be paid that month.

If the index's final level is greater than or equal to the downside threshold level, 50% of the initial level, the payout at maturity will be par plus the final monthly coupon, if any. Otherwise, investors will be fully exposed to the decline of the index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price Aug. 27 and settle Aug. 30.

The Cusip number is 61761JKE8.

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