Morgan Stanley plans contingent income notes tied to indexes, oil ETF

By Angela McDaniels

Tacoma, Wash., Aug. 7 – Morgan Stanley Finance LLC plans to price callable contingent income securities due Aug. 11, 2021 linked to the S&P 500 index, the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Every six months, the notes will pay a contingent coupon at the rate of 10% per year if each underlier closes at or above its downside threshold level, 60% of its initial level, on the observation date for that semiannual period.

Beginning Aug. 13, 2018, the notes will be callable at par on any interest payment date.

If the lowest-performing underlier finishes at or above its downside threshold level, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the lowest-performing underlier from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price Aug. 8.

The Cusip number is 61768CNW3.

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