By Toni Weeks
San Luis Obispo, Calif., June 21 - Morgan Stanley priced $7 million of fixed-to-floating leveraged CMS curve-linked notes due June 28, 2028, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 10% for the first year. Beginning June 28, 2014, it will be (a) four times (b) the spread of the 30-year Constant Maturity Swap rate over the five-year CMS rate minus 25 basis points. The interest rate is subject to a floor of zero and a cap of 10% per year and is 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 leveraged CMS curve-linked notes
|
| Amount: | $7 million
|
| Maturity: | June 28, 2028
|
| Coupon: | 10% for first year; beginning June 28, 2014, (a) four times (b) spread of 30-year CMS rate over five-year CMS rate, less 25 bps; subject to minimum rate of zero and maximum of 10% per year; payable quarterly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Pricing date: | June 19
|
| Settlement date: | June 28
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 4%
|
| Cusip: | 61760QCW2
|
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