New Issue: Morgan Stanley prices $2.95 million trigger jump notes linked to basket

By Susanna Moon

Chicago, Nov. 20 - Morgan Stanley priced $2.95 million of 0% enhanced trigger jump securities due Nov. 21, 2016 linked to a basket of two indexes and three funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, iShares MSCI EAFE index fund with a 20% weight, the iShares MSCI Emerging Markets index fund with a 10% weight and iShares FTSE China 25 index fund with a 10% weight.

If the basket finishes at or above the 70% trigger level, the payout at maturity will be par plus the greater of any gain and the fixed percentage of 21.6%.

Otherwise, investors will be fully exposed to any losses if the basket drops below the 70% trigger.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Enhanced trigger jump securities
Underlying basket:	S&P 500 index (40% weight), the Russell 2000 index (20% weight), iShares MSCI EAFE index fund (20% weight), the iShares MSCI Emerging Markets index fund (10% weight) and iShares FTSE China 25 index fund (10% weight)
Amount:	$2,945,500
Maturity:	Nov. 21, 2016
Coupon:	0%
Price:	Par
Payout at maturity:	If basket falls by 30% or less, par plus return, floor of 21.6%; otherwise, full exposure to losses
Initial index levels:	1,359.88 for S&P; 776.28 for Russell; $40.41 for EM fund; $52.09 for EAFE fund; and $35.76 for China fund
Trigger level:	70% of initial index level
Pricing date:	Nov. 16
Settlement date:	Nov. 21
Agent:	Morgan Stanley & Co. LLC
Fees:	3%
Cusip:	61761H756

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