By Jennifer Chiou
New York, Aug. 5 - Morgan Stanley priced $1 million of range accrual step up notes due Aug. 24, 2030 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly. The interest rate will be 7% for the first four years. Beginning Aug. 24, 2014, it will be the reference rate multiplied by the proportion of days on which the index closes at or above 890. The reference rate will be 8% per year in years five through eight, 10% per year in years nine through 12, 12% per year in years 13 through 16 and 15% per year in years 17 through 20.
The payout at maturity will be par.
Beginning Aug. 24, 2011, the notes are callable at par on Feb. 24, May 24, Aug. 24 and Nov. 24 of each year.
The issuer said it might increase the issue size prior to the settlement date, which will be Aug. 24.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Range accrual step up notes
|
| Underlying index: | S&P 500
|
| Amount: | $1 million
|
| Maturity: | Aug. 24, 2030
|
| Coupon: | 7% for first four years; beginning Aug. 24, 2014, reference rate multiplied by proportion of days on which index closes at or above 890; reference rate is 8% per year in years five through eight, 10% in years nine through 12, 12% in years 13 through 16 and 15% in years 17 through 20; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on Feb. 24, May 24, Aug. 24 and Nov. 24 of each year from Aug. 24, 2011 onward
|
| Pricing date: | Aug. 3
|
| Settlement date: | Aug. 24
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.5%
|
| Cusip: | 61745E4Q1
|
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