Morgan Stanley plans five-year lock-in buffered notes tied to the Dow

By Susanna Moon

Chicago, Oct. 1 - Morgan Stanley plans to price 0% lock-in buffered securities due Oct. 31, 2018 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

A lock-in event will occur if the index's closing level has increased from the initial level by at least one of the lock-in levels on an observation date. The lock-in level will be 25% if the index level has increased by at least 25% but less than 30%, 30% if the index level has increased by at least 30% but less than 40%, 40% if the index level has increased by at least 40% but less than 50% and 50% if the index level has increased by at least 50%.

If a lock-in event occurs, the payout at maturity will be par plus the greater of the index return and the highest lock-in level achieved.

If a lock-in event has not occurred, the payout at maturity will be par plus any gain in the index.

Investors will receive par if the index falls by up to 15% and will lose 1% for every 1% decline beyond 15%.

Morgan Stanley & Co. LLC is the agent.

The notes will price on Oct. 28.

The Cusip number is 61761JMD8.

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