Morgan Stanley plans buffered PLUS linked to three indexes, two ETFs

By Angela McDaniels

Tacoma, Wash., May 9 – Morgan Stanley Finance LLC plans to price 0% buffered Performance Leveraged Upside Securities due June 8, 2020 linked to a basket of indexes and exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The basket consists of the S&P 500 index with a 70% weight, the iShares MSCI EAFE exchange-traded fund with a 14% weight, the S&P MidCap 400 index with an 8% weight, the iShares MSCI Emerging Markets exchange-traded fund with a 5% weight and the Russell 2000 index with a 3% weight.

If the final basket level is greater than the initial basket level, the payout at maturity will be par plus 135% to 145% 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.

Otherwise, investors will lose 1.25% for every 1% that the basket declines beyond 20%.

Morgan Stanley & Co. LLC is the agent.

The notes will price June 1.

The Cusip number is 61766BAW1.

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