New Issue: Morgan Stanley prices $3.03 million market plus notes linked to Merck

By Susanna Moon

Chicago, Feb. 20 - Morgan Stanley priced $3.03 million of 0% market plus notes due Aug. 20, 2014 linked to the Merck & Co., Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-out event occurs if Merck stock finishes below the 80% knock-out level.

If a knock-out event never occurs, the payout at maturity will be par plus the greater of any stock gain and a contingent minimum return of 3.55%.

Otherwise, the payout will be par plus the stock return, with exposure to any losses.

Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC as dealer.

Issuer:	Morgan Stanley
Issue:	Market plus notes
Underlying stock:	Merck & Co., Inc. (NYSE: MRK)
Amount:	$3,025,000
Maturity:	Aug. 20, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If Merck stock falls by 20% or less, par plus any gain, floor of 3.55%; otherwise, exposure to any losses
Initial level:	$41.19
Knock-out level:	$32.952, 80% of initial level
Pricing date:	Feb. 14
Settlement date:	Feb. 20
Agent:	Morgan Stanley & Co. LLC
Dealer:	J.P. Morgan Securities LLC
Fees:	1.25%
Cusip:	61761JDA4

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