Morgan Stanley plans contingent income notes on Russell, Euro Stoxx

By Toni Weeks

San Luis Obispo, Calif., Feb. 2 – Morgan Stanley plans to price contingent income securities due Feb. 27, 2030 linked to the worst performing of 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 fixed monthly coupon of 6.5% per year for the first five years. After that, the notes will pay a contingent coupon of 6.5% if each index closes at or above the coupon barrier level, 50% of the initial level, on the observation date for that month. Otherwise, no coupon will be paid that month.

If each index finishes at or above the 50% barrier level, the payout at maturity will be par plus the final coupon. If either index finishes below its barrier level, the payout will be par plus the return of the least-performing index, with full exposure to losses.

The notes (Cusip: 61761JWP0) are expected to price Feb. 24 and settle Feb. 27.

Morgan Stanley & Co. LLC is the agent.

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