Morgan Stanley plans callable contingent income notes on index, fund

By Sarah Lizee

Olympia, Wash., Jan. 30 – Morgan Stanley Finance LLC plans to price callable contingent income securities due Feb. 17, 2022 linked to the SPDR S&P Biotech ETF and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each six months, the notes will pay a coupon at the rate of 9% per year if each asset closes at or above the coupon barrier level, 65% of the initial level, on the observation date for that period.

If each asset finishes at or above the downside threshold level, 65% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the lesser-performing asset’s decline from its initial level.

Beginning Aug. 22, the notes will be callable at par on any interest payment date.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Feb. 15.

The Cusip number is 61768DG66.

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