Morgan Stanley removes buffer from allocation notes linked to indexes

By Angela McDaniels

Tacoma, Wash., March 7 – Morgan Stanley Finance LLC removed the buffer from its upcoming 0% allocation securities due March 28, 2024 linked to a basket consisting of the S&P 500 index, the MSCI EAFE index and the MSCI Emerging Markets index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The best performing of the indexes will be given a 92% to 98% weight, the index with the second-best performance will be weighted at 8% to 2%, and the lowest-performing index will not count toward the basket performance. The actual percentages that will be applicable to the indexes that ultimately have the two highest returns will be set at pricing.

If the basket return is positive, the payout at maturity will be par of $10 plus the basket return. If the basket return is negative, investors will have one-to-one exposure to the decline.

Prior to the amendment, the notes were expected to have a 10% buffer.

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

The notes will price on March 27.

The Cusip number is 61768X473.

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