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Published on 7/9/2018 in the Prospect News Structured Products Daily.

Morgan Stanley aims to price capped buffer gears tied to index basket

By Devika Patel

Knoxville, Tenn., July 9 – Morgan Stanley Finance LLC plans to price 0% capped buffer gears due Feb. 3, 2020 linked to an unequally weighted basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

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 return is greater than zero, the payout at maturity will be par of $10 plus double the basket return, subject to a maximum payout of between 26% and 30%. The exact cap will be set at pricing.

Investors will receive par if the basket declines by 10% or less and will receive will lose 1% for every 1% decline beyond the 10% buffer if the basket falls by more than 10%.

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

The notes (Cusip: 61768R294) will price on July 27 and settle on July 31.


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