New Issue: Morgan Stanley prices $8.7 million contingent income notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., June 17 – Morgan Stanley Finance LLC priced $8.7 million of contingent income securities due June 18, 2026 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 the rate of 7% per year if the index closes at or above its coupon barrier level, 75% of the initial index level, on the 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 downside threshold level, 50% of the initial level, in which case investors will share in the index’s decline from its initial level.

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:	$8,701,000
Maturity:	June 18, 2026
Coupon:	7% per year, payable quarterly if index closes at or above coupon barrier level on the determination date for that quarter
Price:	Par
Payout at maturity:	Par plus final contingent coupon, if any, unless index finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
Initial level:	2,071.5
Coupon barrier:	1,553.625, 75% of initial level
Downside threshold:	1,035.75, 50% of initial level
Pricing date:	June 15
Settlement date:	June 20
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61766BAY7

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