Morgan Stanley plans airbag return notes linked to SPDR S&P 500 fund

By Susanna Moon

Chicago, July 12 - Morgan Stanley plans to price 0% airbag return optimization securities due July 29, 2016 linked to the SPDR S&P 500 exchange-traded fund trust, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 1.5 times any fund gain, up to a maximum return of 30% to 36%. The exact cap will be set at pricing.

Investors will receive par if the shares fall by up to 15%.

Otherwise, the payout will be a number of Huntsman shares equal to $1,000 divided by the conversion price. The conversion price is 85% of the initial share price.

UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the underwriters.

The notes will price on July 26 and settle on July 31.

The Cusip number is 61762P237.

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