New Issue: Morgan Stanley prices $2.65 million 10.2% worst of autocallable RevCons on stocks

By Marisa Wong

Madison, Wis., Nov. 4 – Morgan Stanley priced $2.65 million of worst of fixed-coupon autocallable RevCons due Nov. 5, 2015 linked to the worst performing of the common stocks of Halliburton Co., Apple Inc. and International Business Machines Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is fixed at 10.2% per year and is payable quarterly.

The notes will be automatically called at par plus the quarterly coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date.

The payout at maturity will be par unless any stock closes below its downside threshold level, 65% of its initial level, on any day during the life of the notes and any underlying stock finishes below its initial price, in which case the payout will be a number of shares of the worst performing stock equal to the exchange ratio. The exchange ratio is par of $1,000 divided by the initial share price.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Worst of fixed-coupon autocallable RevCons
Underlying stocks:	Halliburton Co. (Symbol: HAL), Apple Inc. (Symbol: AAPL), International Business Machines Corp. (Symbol: IBM)
Amount:	$2.65 million
Maturity:	Nov. 5, 2015
Coupon:	10.2%, payable quarterly
Price:	Par of $1,000
Payout at maturity:	Par unless any stock closes below its downside threshold level on any day during the life of the notes and any underlying stock finishes below its initial price, in which case a number of shares of the worst performing stock equal to the exchange ratio
Call:	Automatically at par plus coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date
Initial prices:	$54.42 for Halliburton, $107.34 for Apple, $163.46 for IBM
Downside thresholds:	$35.373 for Halliburton, $69.771 for Apple, $106.249 for IBM; 65% of initial prices
Exchange ratios:	18.37560 for Halliburton, 9.31619 for Apple, 6.11770 for IBM
Pricing date:	Oct. 29
Settlement date:	Nov. 5
Agent:	Morgan Stanley & Co. LLC
Fees:	2%
Cusip:	61761JUD9

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