New Issue: Morgan Stanley prices $3 million 0% buffered jump notes linked to index, fund basket

By Susanna Moon

Chicago, Sept. 6 - Morgan Stanley priced $3 million of 0% buffered jump securities due Sept. 8, 2014 linked to two indexes and two exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index and the Russell 2000 index, each with a 30% weight, and the iShares MSCI Emerging Markets index fund and the iShares MSCI EAFE index fund, each with a 20% weight.

If the basket gains, the payout at maturity will be par plus the greater of the return and an upside payment of 29.5%.

Investors will receive par if the basket falls by up to 20% and will be exposed to any decline beyond 20%.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Buffered jump securities
Underlying basket:	S&P 500 index and Russell 2000 index, (each with a 30% weight), iShares MSCI Emerging Markets index fund and iShares MSCI EAFE index fund, (each with a 20% weight)
Amount:	$3 million
Maturity:	Sept. 8, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If basket gains, par plus return, floor of 29.5%; par if basket falls by 20% or less; 1% loss for every 1% decline beyond 20%
Initial levels:	1,204.42 for S&P, 708.93 for Russell, $42.52 for MSCI EM and $52.91 for MSCI EAFE
Pricing date:	Sept. 1
Settlement date:	Sept. 7
Agent:	Morgan Stanley & Co. LLC
Fees:	0.25%
Cusip:	617482YB4

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