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Published on 8/6/2014 in the Prospect News Structured Products Daily.

Morgan Stanley plans to price trigger PLUS tied to Hang Seng China

By Marisa Wong

Madison, Wis., Aug. 6 – Morgan Stanley plans to price 0% trigger Performance Leveraged Upside Securities due August 2018 linked to the Hang Seng China Enterprises index, according to an FWP filing with the Securities and Exchange Commission.

A trigger event occurs if the index falls to or below the trigger level at any time on any day during the life of the notes. The trigger level is 95% of the initial level.

If a trigger event has not occurred and the final index level is greater than the initial level, the payout at maturity will be par plus 500% of the gain, subject to a maximum payment of $2,500 per $1,000 note.

If a trigger event has not occurred and the final level is less than or equal to the initial level, the payout will be par.

If a trigger event has occurred and the final level is greater than the initial level, the payout will be par plus the index gain.

If a trigger event has occurred and the final level is less than or equal to the initial level, the payout will be par plus the index return, with full exposure to losses.

Morgan Stanley & Co. LLC is the agent.

The notes will price and settle in August.

The Cusip number is 61761JSN0.


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