New Issue: Morgan Stanley sells $3.02 million capped leveraged buffered notes on index basket

By Tali Rackner

Norfolk, Va., Feb. 18 – Morgan Stanley priced $3.02 million of capped leveraged buffered notes due Feb. 16, 2018 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 37% weight, the FTSE 100 index with a 23% weight, the Tokyo Stock Price index with a 23% weight, the Swiss Market index with a 9% weight and the S&P/ASX 200 index with an 8% weight.

If the basket return is positive, the payout at maturity will be par plus 1.5 times the basket return, subject to a maximum settlement amount of $1,345 for each $1,000 principal amount of notes.

Investors will receive par if the basket declines by 10% or less and will lose 1.1111% for every 1% that the basket declines beyond 10%.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Capped leveraged buffered notes
Underlying indexes:	Euro Stoxx 50 (37% initial weight), FTSE 100 (23% initial weight), Tokyo Stock Price index (23% initial weight), Swiss Market (9% initial weight) and S&P/ASX 200 (8% initial weight)
Amount:	$3,024,000
Maturity:	Feb. 16, 2018
Coupon:	0%
Price:	Par of $1,000
Payout at maturity:	Par plus 1.5 times any index gain up to $1,345 maximum payout per note; par if basket falls by up to 10%; 1.1111% loss for every 1% drop beyond 10%
Initial levels:	2,756.16 for Euro Stoxx, 5,707.60 for FTSE, 1,196.28 for Tokyo, 7,656.60 for Swiss Market and 4,765.346 for S&P/ASX
Pricing date:	Feb. 12
Settlement date:	Feb. 22
Agent:	Morgan Stanley & Co. LLC
Fees:	2%
Cusip:	61761JW47

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