New Issue: Morgan Stanley prices $3.88 million knock-out notes linked to gold

By Angela McDaniels

Tacoma, Wash., March 5 - Morgan Stanley priced $3.88 million of 0% knock-out notes due Sept. 8, 2014 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.

If the final gold price is less than 85% of the initial gold price, investors will be fully exposed to the gold price decline. Otherwise, the payout at maturity will be par plus the gold return, subject to a minimum payout of par and a maximum payout of 119.3% of par.

Morgan Stanley & Co. LLC is the agent, and J.P. Morgan Securities LLC is dealer.

Issuer:	Morgan Stanley
Issue:	Knock-out notes
Underlying commodity:	Gold
Amount:	$3,878,000
Maturity:	Sept. 8, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If final gold price is less than knock-out level, full exposure to gold price decline; otherwise, par plus gold return, subject to minimum payout of par and maximum payout of 119.3% of par
Initial gold price:	$1,582.25
Knock-out level:	$1,344.9125, 85% of initial gold price
Pricing date:	March 1
Settlement date:	March 6
Agent:	Morgan Stanley & Co. LLC
Dealer:	J.P. Morgan Securities LLC
Fees:	1.25%
Cusip:	6174824A9

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