Morgan Stanley plans contingent income securities tied to two indexes

By Angela McDaniels

Tacoma, Wash., June 3 - Morgan Stanley plans to price contingent income securities due June 29, 2029 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

Interest is payable monthly. The interest rate will be fixed at 7.5% for the first three years. After that, the notes will pay a contingent coupon at an annual rate of 7.5% per year but only if each index closes at or its coupon barrier level, 75% of its initial level, on the observation date for that month.

The payout at maturity will be par unless either index finishes below its downside threshold level, 50% of its initial level, in which case investors will be fully exposed to the decline of the worst-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price June 25 and settle June 30.

The Cusip number is 61761JRE1.

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