Morgan Stanley plans buffered PLUS linked to basket of indexes, ETFs

By Angela McDaniels

Tacoma, Wash., Dec. 23 – Morgan Stanley Finance LLC plans to price 0% buffered Performance Leveraged Upside Securities due Jan. 2, 2025 linked to a basket consisting of the S&P 500 index with a 60% weight, the Russell 2000 index with a 20% weight, the iShares MSCI Emerging Markets exchange-traded fund with a 10% weight and the iShares MSCI EAFE exchange-traded fund with a 10% weight, according to an FWP filing with the Securities and Exchange Commission.

If the final basket level is greater than the initial basket level, the payout at maturity will be par plus at least 111% of the basket return. The exact leverage factor will be set at pricing.

If the final basket level is less than or equal to the initial basket level but has decreased from the initial basket level by no more than 20%, the payout will be par.

If the final basket level has decreased from the initial basket level by more than 20%, investors will lose 1% for every 1% decline beyond 20%.

The notes will be guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price Dec. 27.

The Cusip number is 61769H6C4.

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