New Issue: Morgan Stanley prices $10.1 million PLUS linked to index, fund basket

By Susanna Moon

Chicago, Oct. 23 - Morgan Stanley priced $10.1 million of 0% Performance Leveraged Upside Securities due Nov. 25, 2013 linked to a basket of 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 with a 60% weight, the Russell 2000 index with a 20% weight, the iShares MSCI Emerging Markets index fund with a 10% weight and the iShares MSCI EAFE index fund with a 10% weight.

The payout at maturity will be par plus triple any gain in the basket, up to a maximum payment of $11.55 per $10 principal amount.

Investors will be exposed to any losses.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC handling distribution.

Issuer:	Morgan Stanley
Issue:	Performance Leveraged Upside Securities
Underlying basket:	S&P 500 index (60% weight), Russell 2000 index (20% weight), the iShares MSCI Emerging Markets index fund (10% weight) and the iShares MSCI EAFE index fund (10% weight)
Amount:	$10,099,800
Maturity date:	Nov. 25, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 300% of any basket gain capped at 15.5%; exposure to any losses
Initial levels:	1,434 for S&P, 819 for Russell, $41.50 for EM fund and $54.21 for EAFE fund
Pricing date:	Oct. 19
Settlement date:	Oct. 24
Agent:	Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as distributor
Fees:	2%
Cusip:	61755S800

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