Morgan Stanley plans buffered PLUS with cap linked to indexes, fund

By Susanna Moon

Chicago, Feb. 27 - Morgan Stanley plans to price 0% buffered Performance Leveraged Upside Securities due September 2015 linked to a basket of two indexes and an exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 50% weight, the Euro Stoxx 50 index with a 30% weight and the iShares MSCI Emerging Markets index fund with a 20% weight.

The payout at maturity will be par of $10.00 plus 1.5 times any basket gain, up to a maximum payment of $13.00 to $13.40 per note. The exact cap will be set at pricing.

Investors will receive par if the basket falls by up to 10% and will lose 1% for each 1% drop beyond 10%.

Morgan Stanley & Co. LLC is the agent.

The notes will price in February and settle in March.

The Cusip number is 61761M623.

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