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Published on 10/8/2010 in the Prospect News Structured Products Daily.

New Issue: Morgan Stanley prices $3 million capped notes on index, fund basket

By Jennifer Chiou

New York, Oct. 8 - Morgan Stanley priced $3 million of 0% capped equity-linked notes due Oct. 9, 2015 linked to equal weights of the S&P 500 index, the Russell 2000 index, the Euro Stoxx 50 index and the iShares MSCI Emerging Markets index fund, according to an FWP with the Securities and Exchange Commission.

The payout at maturity will be par plus any basket gain, capped at 41%.

If the basket falls, the payout will be par.

Morgan Stanley & Co. Inc. is the agent.

Issuer:Morgan Stanley
Issue:Capped equity-linked notes
Underlying assets:Equal weights of the S&P 500 index, the Russell 2000 index, the Euro Stoxx 50 index and the iShares MSCI Emerging Markets index fund
Amount:$3 million
Maturity:Oct. 9, 2015
Coupon:0%
Price:Par
Payout at maturity:Par plus any basket gain, capped at 41%; floor of par
Initial levels:1,159.97 for S&P 500, 685.33 for Russell 2000, 2,780 for Euro Stoxx 50 index and $46.06 for iShares MSCI Emerging Markets index fund
Pricing date:Oct. 6
Settlement date:Oct. 12
Agent:Morgan Stanley & Co. Inc.
Fees:0.5%
Cusip:617482NW0

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