By Susanna Moon
Chicago, May 21 - Morgan Stanley amended the coupon terms of its $1 million of leveraged CMS curve and S&P 500 index-linked notes due May 31, 2027, according to a 424B2 filing with the Securities and Exchange Commission.
The fixed portion of the coupon will now be 10% for the first three years. After that it will be six times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each date that the index closes at or above 700, up to a maximum rate of 10%. Interest is payable quarterly.
Originally, the coupon was set at 10% for one year. Then beginning May 31, 2013, it was to be five times the spread of the 30-year CMS rate over the two-year CMS rate, floor of zero and capped at 10%, multiplied by the proportion of days on which the index closes at or above 750.
The payout at maturity will be par.
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: | Leveraged CMS curve and S&P 500 index-linked notes
|
| Amount: | $1 million
|
| Maturity: | May 31, 2027
|
| Coupon: | 10% initially; beginning May 31, 2015, six times spread of 30-year CMS rate over two-year CMS rate for each date that index closes at or above 700, floor of zero and capped at 10%; payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Pricing date: | May 3
|
| Amended: | May 17
|
| Settlement date: | May 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61760QBJ2
|
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