New Issue: Morgan Stanley prices $2.95 million contingent income notes on S&P 500

By Marisa Wong

Morgantown, W.Va., Feb. 8 – Morgan Stanley Finance LLC priced $2.95 million of contingent income securities due Feb. 3, 2027 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at an annualized rate of 7% if the index closes at or above its coupon barrier, 75% of its initial level, on a determination date for that quarter.

The payout at maturity will be par plus the final contingent coupon, if any, unless the index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley Finance LLC
Guarantor:	Morgan Stanley
Issue:	Contingent income securities
Underlying index:	S&P 500
Amount:	$2,953,000
Maturity:	Feb. 3, 2027
Coupon:	7% per year, payable each quarter that index closes at or above coupon barrier on a determination date for that quarter
Price:	Par
Payout at maturity:	Par plus the final contingent coupon, if any, unless the index finishes below its downside threshold, in which case investors will be fully exposed to any losses
Initial level:	2,278.87
Coupon barrier:	1,709.153, 75% of initial level
Downside threshold:	1,367.322, 60% of initial level
Pricing date:	Jan. 31
Settlement date:	Feb. 3
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61768CDZ7

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