New Issue: Morgan Stanley prices $6.88 million autocallable quarterly review notes linked to oil

By Angela McDaniels

Tacoma, Wash., Feb. 25 - Morgan Stanley priced $6.88 million of 0% autocallable quarterly review notes due March 11, 2015 with step-down call level feature linked to West Texas Intermediate light sweet crude oil, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at 102.75 if the settlement price of oil is greater than or equal to the initial oil price on June 6, 2014, at 105.5 if the settlement price is at least 95% of the initial price on Sept. 8, 2014 or at 108.25 if the settlement price is at least 90% of the initial price on Dec. 8, 2014.

If the notes are not called and the final oil price is at least 85% of the initial price, the payout at maturity will be 111. If the final oil price is less than 85% of the initial price but greater than or equal to 80% of the initial price, the payout will be par. If the price declines by more than 20%, investors will lose 1% for every 1% that the final price is less than the initial price.

Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC as dealer.

Issuer:	Morgan Stanley
Issue:	Autocallable quarterly review notes
Underlying commodity:	West Texas Intermediate light sweet crude oil
Amount:	$6,879,000
Maturity:	March 11, 2015
Coupon:	0%
Price:	Par
Payout at maturity:	If final oil price is at least 85% of initial price, 111; if final oil price is less than 85% of initial price but greater than or equal to 80% of initial price, par; if price declines by more than 20%, 1% loss for every 1% that final price is less than initial price
Call:	Automatically if settlement price of oil is greater than or equal to call level on June 6, 2014, Sept. 8, 2014 or Dec. 8, 2014; call price is 102.75 for first call date, 105.5 for second call date and 108.25 for third call date; call level is 100% of initial price on first call date, 95% of initial price on second call date and 90% of initial price on third call date
Initial oil price:	$102.20
Final oil price:	Average of oil prices on five trading days ending March 6, 2015
Pricing date:	Feb. 21
Settlement date:	Feb. 26
Agent:	Morgan Stanley & Co. LLC
Dealer:	J.P. Morgan Securities LLC
Fees:	1%
Cusip:	61762GBB9

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