Morgan Stanley plans contingent income notes tied to Russell, S&P 500

By Angela McDaniels

Tacoma, Wash., Dec. 30 - Morgan Stanley plans to price contingent income securities due Jan. 31, 2029 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 is payable monthly. The interest rate will be 6.5% during years one through five. During years six through 15, interest will be payable at the rate of 6.5% per year only if each index closes at or above its barrier level, 50% of its initial level, on the observation rate for that month.

If the final level of each index is greater than or equal to its barrier level, the payout at maturity will be par plus the final monthly coupon. If the final level of either index is less than its barrier level, investors will be fully exposed to the decline of the worst-performing index from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes will price Jan. 28 and settle Jan. 31.

The Cusip number is 61761JNP0.

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