Morgan Stanley to price securities due 2020 linked to ETF basket

By Toni Weeks

San Luis Obispo, Calif., Feb. 6 – Morgan Stanley plans to price securities with leveraged upside participation to a cap and fixed-percentage buffered downside due March 4, 2020 linked to a basket of unequally weighted exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket components are the SPDR S&P 500 ETF Trust with a 50% weight, the iShares Russell 2000 ETF with a 20 % weight, the iShares MSCI EAFE ETF with a 15% weight and the iShares MSCI Emerging Markets ETF with a 15% weight.

If the basket return is positive, the payout at maturity will be par plus 140% of the basket return, subject to a maximum payout of $1,510 to $1,560 per $1,000 principal amount of notes.

Investors will receive par if the basket falls by up to 15% and will lose 1% for every 1% decline beyond the 15% buffer.

The notes (Cusip: 61761JWU9) will price on Feb. 27 and settle on March 4.

Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents, and Wells Fargo Advisors, LLC is the dealer.

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