By Toni Weeks
San Diego, Sept. 30 - Morgan Stanley priced an additional $20 million of leveraged CMS curve and S&P 500 index-linked notes due Sept. 30, 2031, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $21 million. The initial $1 million of the notes priced Sept. 13.
The coupon is 10% for the first five years. After that, it will be equal to a leverage factor times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the index closes at or above 850, up to a rate of 10% in any interest payment period. Interest is payable quarterly and cannot be less than zero.
The leverage factor will be five times beginning in Sept. 30, 2016, seven times beginning on Sept. 30, 2021 and 10 times beginning on Sept. 30, 2026.
The payout at maturity will be par.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged CMS curve and S&P 500 index-linked notes
|
| Amount: | $21 million, increased from $1 million
|
| Maturity: | Sept. 30, 2031
|
| Coupon: | 10% for five years; then, leverage factor times spread of 30-year CMS rate over two-year CMS rate for each day that S&P closes at or 850, capped at 10% with floor of zero; payable quarterly
|
| Interest leverage factor: | Five times beginning on Sept. 30, 2016, seven times from Sept. 30, 2021 and 10 times from Sept. 30, 2026
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Pricing dates: | Sept. 13 for $1 million, Sept. 29 for $20 million
|
| Settlement date: | Sept. 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 4%
|
| Cusip: | 61745EN72
|
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