Morgan Stanley plans contingent income notes linked to Russell, S&P

By Angela McDaniels

Tacoma, Wash., April 3 – Morgan Stanley Finance LLC plans to price contingent income securities due April 28, 2032 linked to the lesser 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 be guaranteed by Morgan Stanley.

Interest will be payable monthly. In years one through five, the interest rate will be fixed at 7% per year. In years six through 15, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the determination date for that month.

The payout at maturity will be par plus the final contingent coupon unless either index finishes below its downside threshold level, 50% of its initial level, in which case investors will share in the decline of the lesser-performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price April 25.

The Cusip number is 61768CGV3.

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