Morgan Stanley plans trigger income lock-in notes linked to Euro Stoxx

By Wendy Van Sickle

Columbus, Ohio, Sept. 6 – Morgan Stanley Finance LLC plans to price trigger income lock-in securities due Sept. 30, 2021 linked to the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

A lock-in event will occur if the index's closing level is greater than 125% of the initial index level on any semiannual observation date.

Coupon

If a lock-in event occurs on any observation date, the notes will pay a contingent semiannual coupon at the rate of 7% per year on each subsequent contingent coupon payment date. For the observation date on which the lock-in event first occurs, the notes will also pay any contingent semiannual coupons for any prior observation dates for which a contingent semiannual coupon was not paid.

If a lock-in event has not occurred on any observation date and the index’s closing level on the relevant observation date is greater than or equal to the initial index level, the notes will pay a contingent semiannual coupon at the rate of 7% per year for that semiannual period. If the index’s closing level is less than the initial index level, no contingent semiannual coupon will be paid for that observation date.

Payout

If a lock-in event has occurred, the payout at maturity will be par plus the final contingent semiannual coupon.

If a lock-in event has not occurred on any observation date and the final index level is greater than or equal to the downside threshold level, 65% of the initial index level, the payout at maturity will be par and, if the final index level is also greater than or equal to the initial index level, the contingent semiannual coupon for the final observation date.

If a lock-in event has not occurred on any observation date and the final index level is less than the downside threshold, investors will lose 1% for every 1% that the final index level is less than the initial index level.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price Sept. 27.

The Cusip number is 61766BBZ3.

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