New Issue: Morgan Stanley sells $33.53 million callable contingent income notes on S&P 500

By Susanna Moon

Chicago, June 23 – Morgan Stanley priced $33.53 million of callable contingent income securities due June 24, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 7% if the index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that quarter.

The payout at maturity will be par plus the final coupon unless the index finishes below its 60% trigger level, in which case investors will be fully exposed to any losses.

The notes are callable at par on any annual call date beginning on June 24, 2017.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Callable contingent income securities
Underlying index:	S&P 500
Amount:	$33,529,000
Maturity:	June 24, 2025
Coupon:	7% for each quarter index closes at or above coupon barrier level on the observation date for that quarter
Price:	Par
Payout at maturity:	Par plus coupon unless index finishes below its barrier level, in which case investors will be fully exposed to any losses
Coupon barrier:	1,582.493, 75% of initial level
Trigger level:	1,265.994, 60% of initial level
Call option:	At par on any annual call date beginning on June 24, 2017
Pricing date:	June 19
Settlement date:	June 24
Agent:	Morgan Stanley & Co. LLC
Fees:	3%
Cusip:	61761JZR3

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