New Issue: Morgan Stanley prices $1.01 million knock-out notes linked to palladium

By Marisa Wong

Madison, Wis., Nov. 19 – Morgan Stanley priced $1.01 million of 0% knock-out notes due Dec. 2, 2015 linked to the price of palladium, according to a 424B2 filing with the Securities and Exchange Commission.

If the price of palladium finishes at or above the 85% knock-out level, the payout at maturity will be par plus the greater of 5% and the palladium return, up to a maximum return of 15.05%.

Otherwise, investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC as dealer.

Issuer:	Morgan Stanley
Issue:	Knock-out notes
Underlying commodity:	Palladium
Amount:	$1,005,000
Maturity:	Dec. 2, 2015
Coupon:	0%
Price:	Par
Payout at maturity:	If final commodity price is at least 85% of initial price, par plus greater of 5% and commodity return, capped at 15.05%; otherwise, par plus commodity return, with full exposure to losses
Initial price:	$760
Knock-out price:	$646, 85% of initial price
Pricing date:	Nov. 14
Settlement date:	Nov. 19
Agent:	Morgan Stanley & Co. LLC with J.P. Morgan Securities LLC as dealer
Fees:	1%
Cusip:	61762GCL6

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