Morgan Stanley plans to price contingent income securities on two ETFs

By Emma Trincal

New York, July 23 – Morgan Stanley Finance LLC plans to price contingent income securities due Aug. 3, 2023 tied to the worst performing of the Energy Select Sector SPDR fund and the VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.

Quarterly, the notes will pay a contingent coupon at the rate of 9% to 11% per year if each ETF closes at or above its coupon threshold level, 70% of its initial level, on the related determination date. The exact rate will be determined at pricing.

The payout at maturity will be par plus the coupon unless either ETF finishes below its 70% downside threshold, in which case investors will be fully exposed to the decline of the worst-performing fund from its initial level.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The Cusip number is 61773FDL4.

The notes will price on July 30 and settle on Aug. 3.

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