Morgan Stanley plans trigger return optimization notes tied to ETFs

By Angela McDaniels

Tacoma, Wash., April 7 - Morgan Stanley plans to price 0% trigger return optimization securities due April 30, 2014 linked to a basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the iShares MSCI Emerging Markets index fund with a 40% weight, the iShares MSCI EAFE index fund with a 30% weight and the SPDR Trust, series 1 with a 30% weight.

If the basket return is positive, the payout at maturity will be par of $10 plus double the basket gain, subject to a maximum return of 40% to 44% that will be set at pricing.

If the basket return is negative and the final basket level is at least 75% of the initial level, the payout will be par.

If the final basket level is less than 75% of the initial level, the payout will be par plus the basket return.

The securities (Cusip: 61760E564) are expected to price April 26 and settle April 29.

UBS Financial Services Inc. is the dealer, and Morgan Stanley & Co. Inc. is the agent.

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