Morgan Stanley plans to price buffered PLUS on commodities basket

By Toni Weeks

San Diego, Aug. 21 - Morgan Stanley plans to price 0% buffered Performance Leveraged Upside Securities due February 2014 linked to a basket of seven unequally weighted commodities, according to an FWP filing with the Securities and Exchange Commission.

The underlying commodities are Brent blend crude oil with a 20% weight, copper with a 15% weight, gasoline RBOB with a 15% weight, gold with a 15% weight, sugar with a 15% weight, soybean meal with a 10% weight and wheat with a 10% weight.

The payout at maturity will be par plus 1.4 times any basket gain, up to a maximum payment of $1,200 to $1,220 per $1,000 principal amount. The exact maximum payment will be set at pricing.

Investors will receive par if the basket falls by up to 10% and will be exposed to any decline beyond the 10% buffer.

The securities (Cusip: 617482P40) are expected to price and settle in August.

Morgan Stanley & Co. LLC will be the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.