By Angela McDaniels
Tacoma, Wash., Aug. 7 - Morgan Stanley priced $3 million of leveraged CMS curve-linked notes due Aug. 19, 2033 linked to the 30-year Constant Maturity Swap rate and the five-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer said it may increase the issue size prior to the settlement date but is not required to do so.
The interest rate is 10% for the first year. Beginning Aug. 19, 2014, the interest rate will be 4.5 times the spread of the 30-year CMS swap rate over the five-year CMS rate, subject to a minimum interest rate of zero and a maximum interest rate of 10% per year. Interest is payable quarterly.
The payout at maturity will be par.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged CMS curve-linked notes
|
| Amount: | $3 million
|
| Maturity: | Aug. 19, 2033
|
| Coupon: | 10% for one year; thereafter, 4.5 times spread of 30-year CMS swap rate over five-year CMS rate, subject to maximum interest rate of 10% and floor of zero; payable quarterly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Pricing date: | Aug. 5
|
| Settlement date: | Aug. 19
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | Up to 3.5%
|
| Cusip: | 61760QDB7
|
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