Morgan Stanley to price airbag performance notes on Energy Select fund

By Marisa Wong

Madison, Wis., Feb. 4 – Morgan Stanley plans to price 0% airbag performance securities due Feb. 28, 2020 linked to the Energy Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 110% to 125% of any fund gain, with the exact participation rate to be set at pricing. If the fund falls by up to 20%, the payout will be par. If the fund falls by more than 20%, investors will receive a number of shares equal to $1,000 divided by the conversion price, which is 80% of the initial price.

Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is the dealer.

The notes will price on Feb. 24 and settle on Feb. 27.

The Cusip number is 61764V141.

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