Morgan Stanley plans contingent income notes linked to three indexes

By Toni Weeks

San Luis Obispo, Calif., Oct. 1 - Morgan Stanley plans to price contingent income securities due Oct. 31, 2028 linked to the worst performing of the S&P 500 index, 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 monthly coupon at an annual rate of 7.75% if each index closes at or above its barrier level, 50% of its initial level, on the review date for that month.

If each index finishes at or above its barrier level, the payout at maturity will be par plus the final contingent coupon. If any index finishes below its barrier level, investors will be fully exposed to the decline of the worst-performing index from its initial level.

The notes (Cusip: 61761JLW7) are expected to price Oct. 28 and settle Oct. 31.

Morgan Stanley & Co. LLC is the agent.

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