Morgan Stanley plans participation notes linked to Backwardation index

By Angela McDaniels

Tacoma, Wash., July 1 – Morgan Stanley plans to price 0% participation securities due August 2017 linked to the Backwardation Enhanced Bloomberg Commodity Index Total Return, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus the index return, which will be reduced by an adjustment factor of 1.75% per year. The notes are not principal protected, so the payout may be less than par.

The index is a modified version of the Bloomberg Commodity index and consists of certain selected components from the Bloomberg Commodity index deemed by the index methodology to exhibit stronger backwardation characteristics.

Morgan Stanley & Co. LLC is the agent.

The notes will price in July and settle in August.

The Cusip number is 61762GEC4.

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