By Susanna Moon
Chicago, Feb. 15 - Morgan Stanley priced $14 million of leveraged CMS curve and 10-year Constant Maturity Swap rate-linked notes due Feb. 15, 2033, according to a 424B2 filing with the Securities and Exchange Commission.
The upsizing brings the total deal size to $15 million, up from $1 million.
The coupon is 8% for the first year. Beginning Feb. 15, 2014, it will be five times the spread of the 30-year CMS rate over the five-year CMS rate, subject to a minimum of zero and a maximum of 8% per year, multiplied by the proportion of days on which the 10-year CMS rate is greater than or equal to 1.7%. Interest is payable quarterly.
The payout at maturity will be par.
The issuer said it may increase the issue size prior to the settlement date but is not required to do so.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged CMS curve and 10CMS-linked notes
|
| Amount: | $15 million, up from $1 million
|
| Maturity: | Feb. 15, 2033
|
| Coupon: | 8% for first year; beginning Feb. 15, 2014, five times spread of 30-year CMS rate over five-year CMS rate, subject to minimum of zero and maximum of 8% per year, multiplied by proportion of days on which 10-year CMS rate is greater than or equal to 1.7%; payable quarterly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Pricing date: | Jan. 24
|
| Upsized: | Feb. 14
|
| Settlement date: | Feb. 15
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61760QCH5
|
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