Morgan Stanley plans to price contingent coupon notes linked to commodities, indexes

By Angela McDaniels

Tacoma, Wash., Sept. 1 - Morgan Stanley plans to price contingent coupon capital-protected notes due Sept. 30, 2014 linked to a basket of eight commodities and two indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of copper - grade A, corn - CBOT, gold, platinum, silver, West Texas intermediate light sweet crude oil, natural gas, soybeans, the S&P GSCI Wheat Excess Return index and the S&P GSCI Livestock Excess Return index.

In September of each year, the notes will pay a coupon equal to the basket return, subject to a floor of zero. Each basket component's return will have a cap of 12% and a floor of negative 9% to negative 12%, with the exact floor to be set at pricing.

The payout at maturity will be par.

The notes will price Sept. 23.

Morgan Stanley & Co. Inc. is the agent.

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