Morgan Stanley plans trigger securities tied to commodities basket

By Jennifer Chiou

New York, Dec. 7 - Morgan Stanley plans to price 0% trigger securities due December 2012 linked to a basket of five commodities, according to a 424B2 filing with the Securities and Exchange Commission.

The basket is composed of equal weights of copper, corn, palladium, silver and soybeans.

If the final basket return is positive, the payout at maturity will be par plus the basket gain, subject to a maximum payment of $1,410 to $1,510 per $1,000 principal amount.

If the basket remains above the trigger level of 70% during the life of the notes, investors will receive par. Otherwise, investors will be exposed to any losses.

The exact terms will be set at pricing.

The Cusip for the securities is 617482PX6.

Morgan Stanley & Co. Inc. is the agent.

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