Morgan Stanley plans buffered PLUS due 2021 tied to index, ETF basket

By Devika Patel

Knoxville, Tenn., Sept. 30 – Morgan Stanley Finance LLC plans to sell 0% buffered Performance Leveraged Upside Securities due April 8, 2021 linked to a basket of two indexes and two exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The basket consists of the S&P 500 index with a 40% weight, the Russell 2000 index with a 25% weight, the SPDR S&P Midcap 400 ETF trust with a 25% weight and the iShares MSCI Emerging Markets exchange-traded fund with a 10% weight.

The payout at maturity will be par plus 125% of any basket gain, subject to a maximum payout of $1,151 per $1,000 of notes.

Investors will receive par if the basket falls by up to 10% and will lose 1% for each 1% decline beyond 10%.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61769HXA8) will price on Oct. 3 and settle on Oct. 8.

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