Morgan Stanley plans fixed-to-floaters tied to CMS curve, S&P 500

By Toni Weeks

San Diego, Aug. 31 - Morgan Stanley plans to price fixed-to-floating-rate notes due Sept. 15, 2031 linked to the 30-year and two-year Constant Maturity Swap rates and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 9% for the first year. After that, the rate will be 9% for each day that the spread of the 30-year CMS rate over the two-year CMS rate is greater than zero and the closing level of the S&P 500 index is greater than or equal to 850.

Interest is payable monthly.

The payout at maturity will be par.

The notes (Cusip: 61745EK75) are expected to settle Sept. 15.

Morgan Stanley & Co. LLC will be the agent.

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