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Published on 12/30/2013 in the Prospect News Structured Products Daily.

New Issue: Morgan Stanley prices $3.16 million Buffered PLUS linked to indexes, fund

By Susanna Moon

Chicago, Dec. 30 - Morgan Stanley priced $3.16 million of 0% Buffered Performance Leveraged Upside Securities due Dec. 26, 2018 linked to a basket of two indexes and one exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Dow Jones Industrial Average with a 40% weight, the Euro Stoxx 50 index with a 40% weight and the iShares MSCI Emerging Markets ETF with a 20% weight.

The payout at maturity will be par plus 1.11 times any basket gain.

Investors will receive par if the basket falls by up to 20% and will lose 1% for every 1% decline beyond 20%.

Morgan Stanley & Co. LLC is the underwriter.

Issuer:Morgan Stanley
Issue:Buffered Performance Leveraged Upside Securities
Underlying basket:Dow Jones Industrial Average (40% weight), the Euro Stoxx 50 index (40% weight) and the iShares MSCI Emerging Markets ETF (20% weight)
Amount:$3,164,500
Maturity:Dec. 26, 2018
Coupon:0%
Price:Par
Payout at maturity:Par plus 111% of any basket gain; par if basket falls by up to 20%; 1% loss for every 1% decline beyond 20%
Initial levels:16,221.14 for the Dow, 3,049.35 for Euro Stoxx and $40.44 for MSCI EM fund
Pricing date:Dec. 20
Settlement date:Dec. 26
Underwriters:Morgan Stanley & Co. LLC
Fees:3%
Cusip:06742E141

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