Morgan Stanley plans contingent income notes on Russell, Euro Stoxx

By Angela McDaniels

Tacoma, Wash., April 1 – Morgan Stanley plans to price callable contingent income securities due April 30, 2025 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.

Each month, the notes will pay a coupon at the rate of 8% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that month.

If each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par. If either index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index.

Beginning April 30, 2016, the notes will be callable at par on any quarterly redemption date.

Morgan Stanley & Co. LLC is the agent.

The notes will price April 27 and settle April 30.

The Cusip number is 61761JYC7.

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