Morgan Stanley plans convertible accrual notes on CMS, Russell 2000

By Jennifer Chiou

New York, Jan. 25 - Morgan Stanley plans to price CMS curve and Russell 2000 index-linked range accrual notes due Feb. 11, 2031, according to an FWP with the Securities and Exchange Commission.

The interest rate is fixed at 10% for the first year. Beginning Feb. 11, 2012, interest will accrue at 10% for each day that the 30-year Constant Maturity Swap rate is greater than or equal to the two-year CMS rate and the Russell 2000 closes at or above 615. Interest is payable monthly.

The payout at maturity will be par.

The notes (Cusip: 61745E3K5) will settle on Feb. 11.

Morgan Stanley & Co. Inc. is the agent.

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