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Morgan Stanley plans leveraged CMS curve notes linked to S&P, Russell
By Susanna Moon
Chicago, March 15 – Morgan Stanley Finance LLC plans to price leveraged CMS curve securities due March 31, 2036 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.
The coupon will be fixed at 10% for the first year, payable monthly. After that, it will accrue at 10 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, up to a maximum rate of 10% per year, for each day that each index closes at or above its 50% reference level. Interest will be payable monthly and cannot be less than zero.
The payout at maturity will be par unless index finishes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
The notes will settle on March 31.
The Cusip number is 61766Y2N0.
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