New Issue: Morgan Stanley sells $3.48 million trigger notes on commodities basket

By Susanna Moon

Chicago, Dec. 15 - Morgan Stanley priced $3.48 million of 0% trigger securities due Dec. 18, 2012 based on a basket of five equally weighted commodities, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying commodities are copper, corn, palladium, silver and soybeans.

The payout at maturity will be par plus any basket gain, up to a maximum payment of $1,500 per $1,000 principal amount.

If the basket remains above the trigger level of 70% during the life of the notes, investors will receive par. Otherwise, investors will be fully exposed to any losses.

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Trigger securities
Underlying basket:	Copper, corn, palladium, silver and soybeans, equally weighted
Amount:	$3,482,000
Maturity:	Dec. 18, 2012
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any basket gain, capped at 50%; par if basket falls but remains above trigger level; otherwise, full exposure to basket decline
Initial levels:	$9,211.00 for copper, $5.885 for corn, $761.00 for palladium, $29.33 for silver and $13.025 for soybeans
Pricing date:	Dec. 13
Settlement date:	Dec. 16
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.96875%
Cusip:	617482PX6

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