Morgan Stanley plans contingent income buffered notes on Russell, ETF

By Marisa Wong

Morgantown, W.Va., Nov. 15 – Morgan Stanley Finance LLC plans to price contingent income buffered autocallable securities with a one-year initial non-call period due Nov. 19, 2021 linked to the worst performing of the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each month, the notes will pay a contingent coupon at an annualized rate of 7% if each underlying closes at or above its coupon barrier level, 77% of its initial level, on the determination date for that month. Otherwise, no coupon will be paid that month.

Beginning Nov. 21, 2018, the notes will be called at par if each underlying closes at or above its initial level on any monthly early redemption determination date.

If the final level of each underlying is greater than or equal to 77% of its initial level, the payout at maturity will be par plus the last contingent coupon. Otherwise, investors will lose 1.2987% for every 1% that the worst-performing underlying declines beyond 23%.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Nov. 16.

The Cusip number is 61768CUJ4.

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