New Issue: Morgan Stanley prices $2.25 million contingent income notes linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., Sept. 27 - Morgan Stanley priced $2.25 million of contingent income securities due Sept. 29, 2028 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a coupon at an annual rate of 8% if the index closes at or above its coupon barrier level, 50% of its initial level, on the review date for that month.

If the index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If the index finishes below its downside threshold level, investors will be fully exposed to its decline from its initial level.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying index:	Russell 2000
Amount:	$2,251,000
Maturity:	Sept. 29, 2028
Coupon:	8% per year payable monthly if index closes at or above its coupon barrier level on review date for that month
Price:	Par
Payout at maturity:	If index finishes at or above downside threshold level, par plus final contingent coupon, if any; if index finishes below downside threshold level, full exposure to decline from initial level
Initial index level:	1,073.51
Coupon barrier level:	805.133, or 75% of initial level
Downside threshold:	536.755, or 50% of initial level
Pricing date:	Sept. 25
Settlement date:	Sept. 30
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JLA5

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