Morgan Stanley plans five-year trigger gears tied to index basket

By Susanna Moon

Chicago, June 12 – Morgan Stanley Finance LLC plans to price 0% trigger gears securities due June 30, 2023 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.

If the basket finishes above the initial level, the payout at maturity will be par plus the upside gearing of between 2.14 times and 2.24 times the gain. The exact upside gearing will be set at pricing.

If the basket falls but finishes at or above the 50% downside threshold level, the payout will be par.

Otherwise, investors will lose 1% for each 1% decline.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.

The notes will price on June 27 and settle on June 29.

The Cusip number is 61768Q668.

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