Morgan Stanley plans enhanced trigger jump notes on precious metals

By Angela McDaniels

Tacoma, Wash., May 1 - Morgan Stanley plans to price 0% enhanced trigger jump securities due October 2016 linked to a basket containing equal weights of gold, silver and palladium, according to a 424B2 filing with the Securities and Exchange Commission.

If the basket return is greater than negative 15%, the payout at maturity will be par plus the greater of 10% and the basket return, subject to a maximum payout of $1,380 to $1,420 per $1,000 principal amount of notes. The exact cap will be set at pricing.

If the basket return is less than or equal to negative 15%, investors will be fully exposed to the basket's decline from the initial level.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price in May and settle in June.

The Cusip number is 6174824Q4.

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