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Published on 10/3/2012 in the Prospect News Structured Products Daily.

Morgan Stanley plans contingent interest autocallables on Euro Stoxx

By Susanna Moon

Chicago, Oct. 3 - Morgan Stanley & Co. LLC plans to price autocallable contingent interest notes due October 2015 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index closes at or above the 70% barrier level on any quarterly observation date, the notes will pay a coupon at an annualized rate of 7% to 9% for that quarter. The exact contingent quarterly coupon will be set at pricing.

If the index closes at or above the initial share price on any quarterly review date beginning in November 2013, the notes will be called at par plus the coupon.

If the notes have not been called and the index finishes at or above the trigger level, the payout at maturity will be par plus the coupon.

Otherwise, investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the underwriter.

The notes will price in October and settle three days later in November.

The Cusip number is 61755S750.


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