Published on 3/30/2012 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $30 million additional leveraged CMS curve, S&P 500-linked notes
By Angela McDaniels
Tacoma, Wash., March 30 - Morgan Stanley priced $30 million of additional 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 total issue size is now $31 million.
Interest is payable quarterly. The coupon is 10% for the first four years. Beginning March 30, 2016, it will be the leverage factor times 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 the proportion of days on which the index closes at or above 950.
The leverage factor is initially five. It will step up to six on March 30, 2017, to eight on March 30, 2022 and to 10 on March 30, 2027.
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: | $31 million, increased from $30 million
|
| Maturity: | March 30, 2032
|
| Coupon: | 10% for first four years; beginning March 30, 2016, leverage factor times spread of 30-year CMS rate over two-year CMS rate, subject to minimum of zero and maximum of 10% per year, multiplied by proportion of days on which index closes at or above 950
|
| 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 for initial $1 million
|
| Upsized: | March 29
|
| Settlement date: | March 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 4%
|
| Cusip: | 61760QAK0
|
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