Morgan Stanley plans contingent income notes linked to Russell, S&P

By Tali Rackner

Norfolk, Va., April 14 – Morgan Stanley Finance LLC plans to price contingent income securities due April 29, 2031 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.

Interest will be payable monthly. The interest rate will be 7% in years one through five. In years six through 15, the notes will pay a contingent coupon at an annual rate of 7% if each index closes at or above its coupon barrier level, 60% of its initial level, on a determination date for that month.

If each index’s final level is greater than or equal to its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any.

Otherwise, investors will lose 1% for every 1% that the worse-performing index declines from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price on April 26 and settle on April 29.

The Cusip number is 61766BAL5.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.