Morgan Stanley plans leveraged CMS curve, Russell 2000-linked notes

By Marisa Wong

Madison, Wis., Aug. 1 - Morgan Stanley plans to price leveraged CMS curve and Russell 2000 index-linked notes due Aug. 19, 2028, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 10% for the first year. After that, it will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, subject to a minimum of zero and a maximum annualized rate of 10%, multiplied by the proportion of days on which the index closes at or above 75% of its initial level. Interest will be payable quarterly.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

The notes will settle Aug. 19.

The Cusip number is 61760QDA9.

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