Morgan Stanley to price lock-in buffered securities linked to Dow

By Angela McDaniels

Tacoma, Wash., April 1 - Morgan Stanley plans to price 0% lock-in buffered securities due April 30, 2018 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

A lock-in event will occur if the index's closing level is greater than 120% of the initial index level of any of five annual observation dates. The lock-in level will be 20% if the index level has increased by at least 20% but less than 30%, 30% if the index level has increased by at least 30% but less than 40%, 40% if the index level has increased by at least 40% but less than 50% and 50% if the index level has increased by at least 50%.

If a lock-in event occurs, the payout at maturity will be par plus the greater of the index return and the highest lock-in level achieved.

If no lock-in event occurs, the payout at maturity will be par plus any gain in the index. Investors will receive par if the index falls by up to 15% and will lose 1% for every 1% that it declines beyond 15%.

Morgan Stanley & Co. LLC is the agent.

The notes will price April 25 and settle April 30.

The Cusip number is 61761JFC8.

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