Morgan Stanley plans quarterly review notes on platinum, palladium

By Marisa Wong

Madison, Wis., Jan. 26 - Morgan Stanley plans to price 0% autocallable quarterly review notes due Feb. 6, 2012 linked to an equally weighted basket of platinum and palladium, according to an FWP with the Securities and Exchange Commission.

The notes will be automatically called at par plus an annualized premium of at least 16.2% if the basket level is at or above the initial level on April 28, July 28, 2011 or Oct. 28, 2011. The exact call premium will be set at pricing.

If the notes are not called and the final basket level is greater than or equal to the initial level, the payout at maturity will be par plus a fixed amount that is expected to be at least 16.2% and will be set at pricing.

Investors will receive par if the basket falls by up to 10% and will lose 1.111% for every 1% decline beyond the buffer.

The notes (Cusip: 617482QV9) are expected to price on Jan. 28 and settle on Feb. 4.

Morgan Stanley & Co. Inc, J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the agents.

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