New Issue: Morgan Stanley prices $5.13 million of lock-in buffered securities on Brent blend crude oil

By Toni Weeks

San Luis Obispo, Calif., Feb. 27 - Morgan Stanley priced $5.13 million of 0% lock-in buffered securities due Feb. 28, 2018 linked to Brent blend crude oil, according to a 424B2 filing with the Securities and Exchange Commission.

A lock-in event will occur if the price of Brent blend crude oil has increased by one of seven specified lock-in levels from the initial price on any annual observation date beginning Feb. 25, 2014. The lock-in level will be 10% if the oil price rises by at least 10% but less than 15%, 15% if the oil price rises by at least 15% but less than 20%, 20% if the oil price rises by at least 20% but less than 25%, 25% if the oil price rises by at least 25% but less than 30%, 30% if the oil price rises by at least 30% but less than 40%, 40% if the oil price rises by at least 40% but less than 50%, and 50% if the oil price rises by at least 50%.

If a lock-in event occurs, the payout at maturity will be par of $10 plus the greater of the return and the highest lock-in amount.

If no lock-in event occurs, investors will receive par plus any gain in the oil price. Investors will receive par if the oil price falls by up to the 70% threshold level and will lose 1% for every 1% decline below the threshold level.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Lock-in buffered securities
Underlying commodity:	Brent blend crude oil
Amount:	$5,125,000
Maturity:	Feb. 28, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	If lock-in event occurs, par plus greater of the return and the highest lock-in amount; if lock-in event does not occur, par plus any gain in the oil price, par for losses of up to 30% and exposure to losses beyond the 30% buffer
Lock-in event:	On any annual observation date beginning Feb. 25, 2014, a lock-in event will occur if the price of Brent blend crude oil has increased by one of seven specified lock-in levels as follows: the lock-in level will be 10% if the oil price rises by at least 10% but less than 15%, 15% if the oil price rises by at least 15% but less than 20%, 20% if the oil price rises by at least 20% but less than 25%, 25% if the oil price rises by at least 25% but less than 30%, 30% if the oil price rises by at least 30% but less than 40%, 40% if the oil price rises by at least 40% but less than 50%, and 50% if the oil price rises by at least 50%
Initial price:	$114.44
Threshold level:	$80.108, 70% of initial price
Pricing date:	Feb. 25
Settlement date:	Feb. 28
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	6174823W2

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