Morgan Stanley to sell contingent coupon buffered notes on Euro Stoxx

By Devika Patel

Knoxville, Tenn., Aug. 21 – Morgan Stanley Finance LLC plans to price 0% contingent coupon buffered securities due Sept. 3, 2020 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.

The notes will pay a contingent monthly coupon at an annual rate of 7% if the index finishes at or above its coupon trigger level, 80% of its initial level, on each trading day before and during that month. If during any monthly observation period the index closes below its coupon trigger level, no coupon will be paid that month or any subsequent month.

If the index has never closed below the coupon trigger level during the life of the notes, the payout at maturity will be par plus the final coupon. If the index has closed below the coupon trigger level on any day during the life of the notes, investors will lose 1% for every 1% that the index declines below the 88% buffer level.

Morgan Stanley & Co. Inc. is the agent.

The notes (Cusip: 61768CPL5) are expected to price on Aug. 29 and settle on Sept. 1.

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