Morgan Stanley plans contingent income notes on Russell 2000, S&P 500

By Toni Weeks

San Luis Obispo, Calif., May 1 – Morgan Stanley plans to price contingent income securities due May 29, 2030 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a fixed monthly coupon at an annual rate of 6.5% for the first five years. After that, the notes will pay a 6.5% contingent coupon if each index closes at or above its coupon barrier level, 50% of the initial level, on the determination date for that month.

The payout at maturity will be par plus the final contingent coupon unless the worst-performing index finishes below the 50% barrier level, in which case investors will be fully exposed to the decline of the worst-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price May 26 and settle May 29.

The Cusip number is 61761JYX1.

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