New Issue: Morgan Stanley amends $1 million leveraged CMS curve, S&P 500-linked notes

By Angela McDaniels

Tacoma, Wash., March 13 - Morgan Stanley extended the fixed-rate period for its $1 million of leveraged CMS curve and S&P 500 index-linked notes due March 30, 2032, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 10% for the first four years - extended from three years. After that, it will be (a) the leverage factor multiplied by (b) the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 10% per year, multiplied by (c) the proportion of days on which the index closes at or above 950. The leverage factor is five and will increase to six on March 30, 2017, to eight on March 30, 2022 and to 10 on March 30, 2027.

Interest is payable quarterly.

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:	$1 million
Maturity:	March 30, 2032
Coupon:	10% for first four years; after that, leverage factor times spread of 30-year CMS rate over two-year CMS rate, subject to minimum of zero and maximum of 10%, multiplied by proportion of days on which index closes at or above 950; payable quarterly
Leverage factor:	Initially five; steps up to six on March 30, 2017, to eight on March 30, 2022 and to 10 on March 30, 2027
Price:	Variable prices
Payout at maturity:	Par
Pricing date:	March 1
Settlement date:	March 30
Agent:	Morgan Stanley & Co. LLC
Fees:	4%
Cusip:	61760QAK0

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