New Issue: Morgan Stanley prices $3.8 million trigger PLUS linked to three stocks

By Angela McDaniels

Tacoma, Wash., Sept. 3 – Morgan Stanley priced $3.8 million of 0% trigger Performance Leveraged Upside Securities due Sept. 6, 2018 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of the stocks of Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co.

If the basket return is positive, the payout at maturity will be par of $10 plus 200% of the basket return, subject to a maximum return of 41%. Investors will receive par if the basket declines by 15% or less and will be fully exposed to the basket’s decline from its initial level if it falls by more than 15%.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Trigger Performance Leveraged Upside Securities
Underlying stocks:	Bank of America Corp. (Symbol: BAC), Citigroup Inc. (Symbol: C) and JPMorgan Chase & Co. (Symbol: JPM), equally weighted
Amount:	$3,804,750
Maturity:	Sept. 6, 2018
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If basket return is positive, par plus 200% of basket return, up to 41% maximum return; par if final basket level is less than or equal to initial level but greater than trigger level; full exposure to basket’s decline from initial level if final level is less than trigger level
Initial share prices:	$16.34 for Bank of America, $53.48 for Citigroup and $64.10 for JPMorgan
Trigger level:	85% of the initial basket level
Pricing date:	Aug. 31
Settlement date:	Sept. 3
Agent:	Morgan Stanley & Co. LLC
Fees:	3%
Cusip:	61765G820

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