New Issue: Morgan Stanley prices $3.25 million leveraged CMS curve, S&P 500-linked notes

By Angela McDaniels

Tacoma, Wash., Sept. 27 - Morgan Stanley priced $3.25 million of fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due Sept. 30, 2028, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon is 9% for the first year. Beginning Sept. 30, 2014, it will be (a) five times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate multiplied by (b) the proportion of days on which the index's closing level is at least 75% of the initial index level.

Interest is payable quarterly. The interest rate is subject to a floor of zero and a cap of 9% per year.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Fixed-to-floating-rate leveraged CMS curve and S&P 500-linked notes
Underlyings:	30-year CMS rate, two-year CMS rate, S&P 500 index
Amount:	$3.25 million
Maturity:	Sept. 30, 2028
Coupon:	9% for first year; beginning Sept. 30, 2014, five times spread of 30-year CMS rate over two-year CMS rate multiplied by proportion of days on which S&P 500 closes at or above index reference level, subject to minimum rate of zero and maximum rate of 9% per year; payable quarterly
Price:	Par
Payout at maturity:	Par
Initial index level:	1,692.77
Index reference level:	1,269.5775, 75% of initial index level
Pricing date:	Sept. 25
Settlement date:	Sept. 30
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61760QDK7

© 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.