Morgan Stanley plans PLUS with 15.2%-17.2% cap on index, fund basket

By Susanna Moon

Chicago, Oct. 15 - Morgan Stanley plans to price 0% Performance Leveraged Upside Securities due November 2013 linked to a basket of two indexes and two exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 60% weight, Russell 2000 index with a 20% weight, the iShares MSCI Emerging Markets index fund with a 10% weight and the iShares MSCI EAFE index fund with a 10% weight.

The payout at maturity will be par of $10.00 plus triple any basket gain, up to a maximum payout of $11.52 to $11.72 per note. The exact cap will be set at pricing.

Investors will be exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

The notes will price in October and settle three days later.

The Cusip number is 61755S800.

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