Morgan Stanley plans contingent income autocallables linked to indexes

By Susanna Moon

Chicago, Feb. 4 – Morgan Stanley plans to price contingent income autocallable securities due Feb. 28, 2031 linked to the worse performing of the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be fixed at 9.5% for the first two years, payable quarterly. After that, the notes will pay a contingent quarterly coupon at an annual rate of 9.5% if each index closes at or above its initial level on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any review date after one year.

The payout at maturity will be par plus the final contingent coupon unless either index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Feb. 24 and settle on Feb. 29.

The Cusip number is 61761JV97.

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