Morgan Stanley to price buffered return notes linked to 30 stocks

By Angela McDaniels

Tacoma, Wash., Feb. 11 – Morgan Stanley plans to price 0% buffered return optimization securities due June 30, 2017 linked to a basket of 30 stocks, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket includes 3M Co., American Express Co., Apple Inc., Boeing Co., Caterpillar Inc., Chevron Corp., Cisco Systems, Inc., Coca-Cola Co., E. I. du Pont de Nemours and Co., Exxon Mobil Corp., General Electric Capital Corp., Goldman Sachs Group, Inc., Home Depot, Inc., Intel Corp., International Business Machines Corp., Johnson & Johnson, JPMorgan Chase & Co., McDonald’s Corp., Merck & Co., Inc., Microsoft Corp., Nike, Inc., Pfizer Inc., Procter & Gamble Co., Travelers Cos., Inc., United Technologies Corp., UnitedHealth Group Inc., Verizon Communications Inc., Visa Inc., Wal-Mart Stores, Inc. and Walt Disney Co.

If the basket return is positive, the payout at maturity will be par of $10 plus 1.5 times the basket return, subject to a maximum return that is expected to be 13% to 15% and will be set at pricing. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.

The notes will price Feb. 24.

The Cusip number is 61765U886.

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