Morgan Stanley plans contingent coupon notes tied to commodity basket

By Susanna Moon

Chicago, June 24 - Morgan Stanley plans to price contingent coupon commodity-linked notes due Jan. 29, 2015 tied to a basket of eight commodities and two commodity indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The equally weighted basket components are copper, corn, cotton, gasoline RBOB, nickel, palladium, silver, sugar, the S&P GSCI Brent Crude Index - Excess Return and the S&P GSCI Livestock Index - Excess Return.

The notes will pay a semiannual coupon equal to the sum of the weighted component returns of the basket commodities, with a floor of zero. If a commodity's return is positive, its component return will equal a fixed return of 5.5% to 6.5%. If a commodity's return is negative, its component return will be the greater of the commodity return and negative 20%.

The exact terms will be set at pricing.

The payment at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

The notes will price on July 25 and settle on July 28.

The Cusip is 617482VJ0.

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