Morgan Stanley plans contingent income notes linked to three indexes

By Angela McDaniels

Tacoma, Wash., July 31 – Morgan Stanley Finance LLC plans to price contingent income securities due Aug. 9, 2027 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Interest will be payable monthly. In years one through three, the interest rate will be fixed at 7.5% per year. In years four through 10, the notes will pay a contingent coupon at the rate of 7.5% per year if each index closes at or above its barrier level, 60% of its initial level, on the determination date for that month.

The payout at maturity will be par plus the final contingent coupon unless any index finishes below its barrier level, in which case investors will share in the decline of the least-performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price Aug. 4.

The Cusip number is 61768CNG8.

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