New Issue: Morgan Stanley prices $354,000 lock-in buffered securities tied to Dow

By Toni Weeks

San Luis Obispo, Calif., April 30 - Morgan Stanley priced $354,000 of 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 has increased from the initial level by at least one of the lock-in levels on 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 a lock-in event has not occurred, 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.

Issuer:	Morgan Stanley
Issue:	Lock-in buffered securities
Underlying index:	Dow Jones industrial average
Amount:	$354,000
Maturity:	April 30, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	If a lock-in event occurs, par plus the greater of index return and highest lock-in level achieved; if a lock-in event has not occurred, par plus any gain in the index, par if index falls by up to 15%, exposure to losses beyond 15% buffer
Lock-in event:	Index's closing level is greater than 120% of initial index level on April 25, 2014, April 25, 2015, April 25, 2016, April 25, 2017 or April 25, 2018; lock-in level will be 20% if index level has increased by at least 20% but less than 30%, 30% if index level has increased by at least 30% but less than 40%, 40% if index level has increased by at least 40% but less than 50% and 50% if index level has increased by at least 50%
Initial level:	14,700.8
Buffer value:	12,495.68, 85% of initial value
Pricing date:	April 25
Settlement date:	April 30
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JFC8

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