By Angela McDaniels
Tacoma, Wash., June 17 - Morgan Stanley priced $12 million of additional fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due June 28, 2028, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer priced $1 million of the notes on June 4. The issue size is now $13 million.
The coupon will be 9% for the first two years. Beginning June 28, 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 is subject to a floor of zero and a cap of 9% per year. Interest is payable quarterly.
The payout at maturity will be par.
The issuer said it may increase the issue size further prior to the June 28 settlement date but is not required to do so.
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: | $13 million, increased from $1 million
|
| Maturity: | June 28, 2028
|
| Coupon: | 9% for first two years; beginning June 28, 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 prices
|
| Payout at maturity: | Par
|
| Pricing date: | June 4
|
| Settlement date: | June 28
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 3%
|
| Cusip: | 61760QCQ5
|
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