New Issue: Morgan Stanley sells $1.13 million contingent income notes on crude oil

By Marisa Wong

Madison, Wis., Jan. 30 - Morgan Stanley priced $1.13 million of contingent income securities due Jan. 31, 2029 linked to West Texas Intermediate light sweet crude oil, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly interest payment at an annual rate of 7.25% if the oil price closes at or above 72.5% of the initial price on the observation rate for that month.

The payout at maturity will be par plus the final monthly coupon, if any, unless the oil price finishes below its 50% knock-in level, in which case investors will be fully exposed to the decline in the oil price.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying commodity:	West Texas Intermediate light sweet crude oil
Amount:	$1,125,000
Maturity:	Jan. 31, 2029
Coupon:	7.25% per year, payable monthly if oil price closes at or above downside threshold level on observation rate for that month
Price:	Par
Payout at maturity:	Par plus final monthly coupon, if any, unless oil price finishes below knock-in level, in which case investors will be fully exposed to decline in oil price
Initial price:	$97.41
Downside threshold:	$70.62225, 72.5% of initial price
Knock-in level:	$48.705, 50% of initial price
Pricing date:	Jan. 28
Settlement date:	Jan. 31
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61762GAW4

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