Morgan Stanley to price callable contingent income notes on indexes

By Toni Weeks

San Luis Obispo, Calif., May 1 – Morgan Stanley plans to price callable contingent income securities due May 29, 2025 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a fixed monthly coupon at an annual rate of 7.5% for the first three years. After that, the notes will pay a contingent 7.5% coupon if each index closes at or above its coupon barrier level, 70% of the initial level, on the determination date for that month.

The payout at maturity will be par plus the final contingent coupon if each index finishes at or above the 70% coupon barrier level. If either index falls below the 70% barrier level but each index finishes at or above its downside threshold level, 50% of the initial level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst-performing index.

The notes are callable at par on any quarterly redemption date after one year.

Morgan Stanley & Co. LLC is the agent.

The notes will price May 26 and settle May 29.

The Cusip number is 61761JYR4.

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