Morgan Stanley plans equity-linked lock-in notes tied to S&P 500

By Marisa Wong

Madison, Wis., May 26 - Morgan Stanley plans to price equity-linked lock-in notes due June 24, 2026 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes carry a coupon of 1%. Interest is payable annually.

A lock-in event occurs if on an annual observation date the index appreciates by an amount corresponding to one of the lock-in levels, and the applicable lock-in level will be observed for that observation date. The lock-in level for any annual observation date will be:

• 20% if the index closing level has increased by at least 20% but less than 40% from the initial level;

• 40% if the index closing level has increased by at least 40% but less than 60% from the initial level;

• 60% if the index closing level has increased by at least 60% but less than 80% from the initial level;

• 80% if the index closing level has increased by at least 80% but less than 100% from the initial level; and

• 100% if the index closing level has increased by 100% or more from the initial level.

The payout at maturity will equal par plus the supplemental redemption amount, if any, plus accrued interest. The supplemental redemption amount will equal par times the greater of the highest lock-in level observed during the life of the notes and the index return, subject to a floor of zero.

The notes (Cusip: 61760E341) will price June 24 and settle June 29.

Morgan Stanley & Co. Inc. is the agent.

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