Morgan Stanley plans to price five-year TOPS linked to S&P 500 index

By Angela McDaniels

Tacoma, Wash., Aug. 31 - Morgan Stanley plans to price 0% Target Optimized Participation Securities due Sept. 29, 2016 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the final index level is greater than the initial index level, the payout at maturity will be par plus the greater of the lookback percent increase and 30%. The lookback percent increase will be the percentage increase from the initial index level to the highest closing level of the index observed on the observation dates, which are every Wednesday during the life of the notes.

If the final index level is less than or equal to the initial index level, the payout will be (a) par multiplied by (b) the quotient of the final index level divided by the initial index level multiplied by (c) 130%. If the final index level has decreased from the initial index level by more than 23.077%, this calculation will result in a loss of principal.

The notes (Cusip: 617482XX7) will price Sept. 26 and settle Sept. 29.

Morgan Stanley & Co. LLC is the agent.

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