By Angela McDaniels
Tacoma, Wash., March 26 - Morgan Stanley changed the starting values of two components in the basket to which its $8 million 0% buffered securities due March 31, 2012 are linked, according to an FWP filing with the Securities and Exchange Commission.
The basket includes the S&P 500 index with a 75% weight, the Nasdaq 100 index with a 15% weight and the iShares MSCI EAFE index fund with a 10% weight.
The initial level for the S&P 500 is now 806.12 rather than 806.25, and the initial share price of the index fund is now $38.20 instead of $38.24.
The payout at maturity will be par of $10 plus 112.5% of any basket gain. Investors will receive par if the basket declines by 20% or less and will lose 1% for every 1% that the basket declines beyond 20%.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Buffered securities
|
| Underlying basket: | S&P 500 index (75% weight), Nasdaq 100 index (15% weight) and iShares MSCI EAFE index fund (10% weight)
|
| Amount: | $8 million
|
| Maturity: | March 31, 2012
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 112.5% of any basket gain; par if basket falls by 20% or less; 1% loss for every 1% decline beyond 20%
|
| Initial levels: | 806.12 for S&P 500, 1,234.34 for Nasdaq 100, $38.20 for iShares MSCI EAFE index fund
|
| Pricing date: | March 24
|
| Settlement date: | March 31
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.75%
|
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