Morgan Stanley plans contingent income securities linked to indexes

By Jennifer Chiou

New York, June 5 – Morgan Stanley plans to price contingent income securities due June 18, 2019 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly. The notes will pay a contingent coupon at an annual rate of 5.5% per year but only if each index closes at or its coupon barrier level, 70% of its initial level, on the observation date for that month.

The payout at maturity will be par unless either index finishes below its barrier level, 70% of its initial level, in which case investors will be fully exposed to the decline of the worst-performing index.

The notes (Cusip: 61761JRK7) are expected to price on June 13 and settle on June 18.

Morgan Stanley & Co. LLC is the agent.

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