By Jennifer Chiou
New York, March 28 - Morgan Stanley priced upsized its issue of Constant Maturity Swap (CMS) curve linked accrual notes due March 30, 2023 to $4.77 million from $3 million, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly and will accrue at 8.5% per year for the first three years. Beginning March 30, 2011, interest will equal 8.5% per year multiplied by the proportion of days on which the spread of the 30-year CMS rate over the 10-year CMS rate is at least 0%. Interest will accrue at 2% per year when the spread is less than 0%.
The notes are callable at par on any interest payment date beginning March 30, 2011.
The payout at maturity will be par.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | CMS curve linked accrual notes
|
| Amount: | $4,771,000 (upsized from $3 million)
|
| Maturity: | March 30, 2023
|
| Coupon: | 8.5% per year for three years; beginning March 30, 2011, 8.5% per year multiplied by proportion of days on which the spread of the 30-year CMS rate over the 10-year CMS rate is at least 0%; interest will accrue at 2% per year when the spread is less than 0%; reset and payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call: | At par on any interest payment date beginning March 30, 2011
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2%
|
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