By Marisa Wong
Madison, Wis., April 10 – Morgan Stanley priced $1 million of CMS curve range accrual securities due April 30, 2035 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be fixed at 9% for the first year. After that, it will accrue at 9% for each day that the 30-year Constant Maturity Swap rate is greater than the two-year CMS rate and the index closes at or above the 60% barrier level. Interest is payable monthly.
The payout at maturity will be par plus accrued interest unless either index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
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| Issue: | CMS curve range accrual securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $1 million
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| Maturity: | April 30, 2035
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| Coupon: | Fixed at 9% for first year; after that, 9% per year for each day that 30-year CMS rate is greater than two-year CMS rate and index closes at or above 60% barrier level; payable monthly
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| Price: | Variable
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| Payout at maturity: | Par plus accrued interest unless either index finishes below 50% trigger level, in which case investors will be fully exposed to any losses of worst performing index
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| Pricing date: | April 7
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| Settlement date: | April 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61760QFY5
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