New Issue: Morgan Stanley prices $8.28 million buffered PLUS linked to index, ETFs

By Angela McDaniels

Tacoma, Wash., July 3 - Morgan Stanley priced $8.28 million of 0% buffered Performance Leveraged Upside Securities due July 7, 2014 linked to a basket of one index and four exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the SPDR S&P 500 ETF Trust with a 40% weight, the iShares Russell 2000 index fund with a 20% weight, the iShares MSCI Emerging Markets index fund with a 15% weight, the S&P 100 index with a 15% weight and the iShares MSCI EAFE index fund with a 10% weight.

The payout at maturity will be par of $10 plus 200% of any basket gain, up to a maximum return of 25%. Investors will receive par if the basket falls by up to 20% and will lose 1% for every 1% that it declines beyond 20%.

Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Smith Barney LLC is handling distribution.

Issuer:	Morgan Stanley
Issue:	Buffered Performance Leveraged Upside Securities
Underlying basket:	SPDR S&P 500 ETF Trust (40% weight), iShares Russell 2000 index fund (20% weight), iShares MSCI Emerging Markets index fund (15% weight), S&P 100 index (15% weight) and iShares MSCI EAFE index fund (10% weight)
Amount:	$8,276,000
Maturity:	July 7, 2014
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 200% of any basket gain, up to maximum return of 25%; par if basket falls by up to 20%; 1% loss for every 1% that basket declines beyond 20%
Pricing date:	June 29
Settlement date:	July 5
Agent:	Morgan Stanley & Co. LLC
Distribution:	Morgan Stanley Smith Barney LLC
Fees:	2.25%
Cusip:	61755S362

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