By Angela McDaniels
Tacoma, Wash., April 18 - Morgan Stanley priced $1 million of CMS curve and S&P 500 index-linked range accrual notes due April 30, 2032 with automatic redemption based on the S&P 500, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be 9% for the first year. Beginning April 30, 2013, the interest rate will be 9% per year multiplied by the proportion of days on which the 30-year Constant Maturity Swap rate is greater than or equal to the two-year CMS rate and the closing level of the S&P 500 is at least 990. Interest is payable monthly.
The payout at maturity will be par.
Beginning April 30, 2017, the notes will be automatically redeemed at par if the index closes at or above the initial index level on the 30th day of any month.
The issuer said it may increase the issue size prior to the settlement date but is not required to do so.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Range accrual notes with automatic redemption
|
| Underlyings: | 30-year CMS rate, two-year CMS rate, S&P 500 index
|
| Amount: | $1 million
|
| Maturity: | April 30, 2032
|
| Coupon: | 9% for first year; beginning April 30, 2013, 9% per year multiplied by proportion of days on which 30-year CMS rate is greater than or equal to two-year CMS rate and index's closing level is at least 990; payable monthly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Call: | Automatically at par if index closes at or above initial index level on 30th day of any month from April 30, 2017 onward
|
| Pricing date: | April 16
|
| Settlement date: | April 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 4%
|
| Cusip: | 61760QBB9
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
