By Jennifer Chiou
New York, June 7 - Morgan Stanley priced an upsized issue of fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due June 7, 2028, adding $10 million of notes to the original size of $10 million, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 9% for the first two years. Beginning on June 7, 2015, it will be (a) four times the spread of the 30-year Constant Maturity Swap rate over the five-year CMS rate multiplied by (b) the proportion of days on which the index's closing level is greater than or equal to 1,150. The interest rate will be subject to a floor of zero and a cap of 9% per year. Interest will be payable quarterly.
The payout at maturity will be par.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Fixed-to-floating-rate leveraged CMS curve and S&P 500-linked notes
|
| Amount: | $20 million (upsized from $10 million)
|
| Maturity: | June 7, 2028
|
| Coupon: | 9% for first two years; beginning on June 7, 2015, four times spread of 30-year CMS rate over five-year CMS rate, multiplied by proportion of days on which S&P 500 is at least 1,150; subject to minimum rate of zero and maximum of 9% per year; payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Pricing date: | June 4
|
| Upsize date: | June 4
|
| Settlement date: | June 7
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 3%
|
| Cusip: | 61760QCS1
|
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