Morgan Stanley to price contingent income securities linked to gold

By Toni Weeks

San Diego, Nov. 6 - Morgan Stanley plans to price contingent income securities due Nov. 30, 2020 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly payment at an annualized rate of 7% if the gold price closes at or above the downside threshold level - 80% of the initial gold price - on the determination date for that month.

If the gold price finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent monthly payment. If the final price is less than the downside threshold level but greater than or equal to the knock-in level, 60% of the initial price, the payout at maturity will be par. If the final price is less than the knock-in level, investors will be exposed to losses from the initial price.

Morgan Stanley & Co. LLC will be the agent.

The notes will price on Nov. 27.

The Cusip number is 6174823R3.

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