Morgan Stanley plans lookback entry jump securities linked to oil

By Toni Weeks

San Diego, Sept. 26 - Morgan Stanley plans to price 0% lookback entry jump securities due October 2015 linked to the performance of Brent blend crude oil, according to a 424B2 filing with the Securities and Exchange Commission.

The initial commodity price will be equal to the lowest price during the lookback observation period, which is every trading day beginning on the pricing date and ending in December.

If the commodity return is positive, the payout at maturity will be par plus the greater of the commodity return and an upside payment of 20% to 22%, subject to a maximum payment of $2,000 per $1,000 principal amount.

Investors will be fully exposed to any decline in the oil price.

The exact terms will be set at pricing.

The notes (Cusip: 617482P81) will price in October and settle in November.

Morgan Stanley & Co. LLC will be the agent with Morgan Stanley Smith Barney LLC as dealer.

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