Morgan Stanley to price contingent income participation notes on Russell 2000, Euro Stoxx 50

By Toni Weeks

San Luis Obispo, Calif., Feb. 2 – Morgan Stanley plans to price contingent income participation 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 contingent monthly coupon of 6.25% per year if each index closes at or above the coupon barrier level, 70% of the initial level, on the observation date for that month. Otherwise, no coupon will be paid that month.

If the index return of each index is positive, the payout at maturity will be par plus the return of the least-performing index plus the final contingent monthly coupon. If the index return of either index is zero or negative but each index finishes at or above its 70% coupon barrier level, the payout will be par plus the final coupon. If either index finishes below the coupon barrier level but each index finishes above its downside threshold level, 50% of its initial level, the payout will be par. If either index finishes below the downside threshold level, investors will be fully exposed to the decline of the worst-performing index.

The notes (Cusip: 61761JWQ8) are expected to price Feb. 24 and settle Feb. 27.

Morgan Stanley & Co. LLC is the agent.

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