Morgan Stanley plans callable contingent income notes on three ETFs

By Sarah Lizee

Olympia, Wash., July 16 – Morgan Stanley Finance LLC plans to price callable contingent income securities due July 21, 2022 tied to the Financial Select Sector SPDR fund, SPDR S&P Regional Banking ETF and SPDR S&P Bank ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a quarterly contingent coupon at the rate of 11% per year if each ETF closes at or above its coupon barrier level, 55% of its initial level, on the observation date that period.

The notes will be callable at par quarterly after six months.

If the lowest-performing ETF finishes at or above its downside threshold level, 55% of its initial level, the payout at maturity will be par plus any coupon due. If the lowest-performing ETF finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing ETF from its initial level.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on July 17.

The Cusip number is 61771BVQ4.

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