Morgan Stanley to price contingent income buffered notes on indexes

By Angela McDaniels

Tacoma, Wash., July 3 - Morgan Stanley plans to price contingent income buffered securities due July 31, 2028 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annualized rate of 8.6% if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that month. Otherwise, no coupon will be paid that month.

If the final level of each index is greater than or equal to 50% of its initial level, the payout at maturity will be par plus the last contingent monthly coupon, if any. Otherwise, investors will lose 2% for every 1% that the worst-performing index declines beyond 50%.

Morgan Stanley & Co. LLC is the agent.

The notes will price July 26 and settle July 31.

The Cusip number is 61761JJU4.

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