AI assistant
MORGAN STANLEY — Capital/Financing Update 2011
Nov 28, 2011
29766_rns_2011-11-28_727b0ec6-9862-4eaa-99d4-02739c1ecc82.zip
Capital/Financing Update
Open in viewerOpens in your device viewer
| ● |
|---|
| Pricing Sheet dated November 23, 2011 to Amendment No. 1 to Preliminary Pricing Supplement No. 1,065 dated November 10, 2011 Registration Statement No. 333-178081 Filed pursuant to Rule 433 |
STRUCTURED INVESTMENTS
Opportunities in U.S. and International Equities
Buffered PLUS Based on the Performance of a Basket of Twenty Stocks due May 22, 2015
Buffered Performance Leveraged Upside Securities SM
| PRICING TERMS – NOVEMBER 23, 2011 | |
|---|---|
| Issuer: | Morgan Stanley |
| Maturity date: | May 22, 2015 |
| Basket: | Ticker Symbol | Exchange | Percentage of Initial Basket Value | Multiplier | Initial Price of Basket Stock | Initial Value per Basket Stock |
|---|---|---|---|---|---|---|
| Amazon.com, Inc. | AMZN | NASDAQ | 5% | 0.026456426 | $188.99 | 5 |
| BorgWarner Inc. | BWA | NYSE | 5% | 0.080632156 | $62.01 | 5 |
| Chevron Corporation | CVX | NYSE | 5% | 0.053333333 | $93.75 | 5 |
| Cognizant Technology Solutions Corporation | CTSH | NASDAQ | 5% | 0.080710250 | $61.95 | 5 |
| Colgate-Palmolive Company | CL | NYSE | 5% | 0.057816836 | $86.48 | 5 |
| Dollar Tree, Inc. | DLTR | NASDAQ | 5% | 0.065265631 | $76.61 | 5 |
| Enterprise Products Partners L.P. | EPD | NYSE | 5% | 0.112183083 | $44.57 | 5 |
| Essex Property Trust, Inc. | ESS | NYSE | 5% | 0.040869707 | $122.34 | 5 |
| IHS Inc. | IHS | NYSE | 5% | 0.059887412 | $83.49 | 5 |
| Oracle Corporation | ORCL | NASDAQ | 5% | 0.172413793 | $29.00 | 5 |
| Philip Morris International Inc. | PM | NYSE | 5% | 0.070402703 | $71.02 | 5 |
| QUALCOMM Incorporated | QCOM | NASDAQ | 5% | 0.096098405 | $52.03 | 5 |
| RenaissanceRe Holdings Ltd. | RNR | NYSE | 5% | 0.073507792 | $68.02 | 5 |
| Schlumberger N.V. | SLB | NYSE | 5% | 0.075187970 | $66.50 | 5 |
| Target Corporation | TGT | NYSE | 5% | 0.097030856 | $51.53 | 5 |
| Teradata Corporation | TDC | NYSE | 5% | 0.100100100 | $49.95 | 5 |
| Union Pacific Corporation | UNP | NYSE | 5% | 0.052083333 | $96.00 | 5 |
| United Technologies Corporation | UTX | NYSE | 5% | 0.070452304 | $70.97 | 5 |
| V.F. Corporation | VFC | NYSE | 5% | 0.039041149 | $128.07 | 5 |
| Visa Inc. | V | NYSE | 5% | 0.055997312 | $89.29 | 5 |
| Aggregate principal amount: — Payment at maturity: | $6,750,000 — · If the final basket value is greater than the initial basket value: $10 + the leveraged upside payment . · If the final basket value is less than or equal to the initial basket value but has decreased from the initial basket value by an amount less than or equal to the buffer amount of 10%: $10 · If the final basket value is less than the initial basket value and has decreased from the initial basket value by an amount greater than the buffer amount of 10%: ($10 × the basket performance factor) + $1 This amount will be less than the stated principal amount of $10. However, under no circumstances will the Buffered PLUS pay less than $1 per Buffered PLUS at maturity. | ||
|---|---|---|---|
| Leveraged upside payment: | $10 × leverage factor × basket percent increase | ||
| Leverage factor: | 126% | ||
| Basket percent increase: | (final basket value – initial basket value) / initial basket value | ||
| Initial basket value: | 100, which is equal to the sum of the products of the closing price of each basket stock on the pricing date and the multiplier for such basket stock on the pricing date | ||
| Final basket value: | The basket value on the basket valuation date | ||
| Basket valuation date: | May 19, 2015, subject to adjustment for non-trading days and certain market disruption events | ||
| Basket value: | On any date, the sum of the products of the closing price and the multiplier for each basket stock | ||
| Multiplier: | On the pricing date, the multiplier for each basket stock will be calculated so that the basket stocks will be equally weighted based on the price of each basket stock. | ||
| Buffer amount: | 10% | ||
| Minimum payment at maturity: | $1 per Buffered PLUS (10% of the stated principal amount) | ||
| Basket performance factor: | final basket value / initial basket value | ||
| Stated principal amount: | $10 per Buffered PLUS | ||
| Issue price: | $10 per Buffered PLUS | ||
| Pricing date: | November 23, 2011 | ||
| Original issue date: | November 29, 2011 (3 business days after the pricing date) | ||
| CUSIP / ISIN: | 61760T207 / US61760T2078 | ||
| Listing: | The Buffered PLUS will not be listed on any securities exchange. | ||
| Agent: | Morgan Stanley & Co. LLC (“MS & Co.”), a wholly-owned subsidiary of Morgan Stanley. See “Supplemental information regarding plan of distribution; conflicts of interest” in the accompanying preliminary pricing supplement. | ||
| Commissions and Issue Price: | Price to Public | Agent’s Commissions (1) | Proceeds to Issuer |
| Per Buffered PLUS | $10.00 | $0.30 | $9.70 |
| Total | $6,750,000 | $202,500 | $6,547,500 |
(1) Selected dealers and their financial advisors will collectively receive from the Agent, MS & Co., a fixed sales commission of $0.30 for each Buffered PLUS they sell. For additional information, see “Description of Buffered PLUS––Supplemental Information Concerning Plan of Distribution; Conflicts of Interest” in the accompanying preliminary pricing supplement.
You should read this document together with the preliminary pricing supplement describing the offering and the related prospectus supplement and prospectus, each of which can be accessed via the hyperlinks below.
EFPlaceholder Amendment No. 1 to Preliminary Pricing Supplement No. 1,065 dated November 10, 2011
EFPlaceholder Prospectus Supplement dated November 21, 2011
EFPlaceholder Prospectus dated November 21, 2011
The Buffered PLUS are not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of, or guaranteed by, a bank.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837.