Morgan Stanley amends trigger jump notes linked to S&P 500, Euro Stoxx

By Angela McDaniels

Tacoma, Wash., Sept. 8 – Morgan Stanley changed the payout at maturity of its upcoming 0% trigger jump securities due September 2017 linked to the worst performing of the S&P 500 index and the Euro Stoxx 50 index, according to an amended FWP filing with the Securities and Exchange Commission.

If each index finishes at or above its initial level, the payout at maturity will be par of $10 plus the greater of the return of the worst-performing index and 32.5%. If either index finishes below its initial level but each index finishes at or above its downside threshold level, 75% of its initial level, the payout will be par. If either index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index.

Prior to the amendment, the payout at maturity was expected to be as follows: If each index finishes at or above its downside threshold level, the payout will be par plus the greater of the return of the worst-performing index and 32.5%. If either index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes are still expected to price and settle in September.

The Cusip number is 61758S658.

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