New Issue: Morgan Stanley prices $5 million leveraged CMS curve, S&P 500-linked notes

By Susanna Moon

Chicago, Aug. 30 - Morgan Stanley priced $5 million of fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due Sept. 27, 2028, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon is 12% for the first year. After that, it will accrue at eight times the spread of the 30-year Constant Maturity Swap rate over the five-year CMS rate for each day that the index closes at above 50% trigger level, up to a maximum rate of 12%. Interest is payable quarterly and cannot be less than zero.

If the index finishes at or above the 50% barrier level, the payout at maturity will be par.

Otherwise, investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Leveraged CMS curve and S&P 500-linked notes
Underlyings:	30-year CMS rate, five-year CMS rate, S&P 500 index
Amount:	$5 million
Maturity:	Sept. 27, 2028
Coupon:	12% initially; beginning Sept. 27, 2014, eight times spread of 30-year CMS rate over five-year CMS rate for each day that index closes at or above trigger level, capped at 12%; payable quarterly
Price:	Variable
Payout at maturity:	If index finishes at or above barrier level, par; otherwise, full exposed to any losses
Trigger level:	50% of initial index level
Pricing date:	Aug. 28
Settlement date:	Sept. 27
Agent:	Morgan Stanley & Co. LLC
Fees:	4%
Cusip:	61760QDJ0

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.