Morgan Stanley eyes leveraged CMS curve securities on S&P, Russell

By Lisa Mayntz

Chicago, Feb. 24 – Morgan Stanley Finance LLC plans to price leveraged CMS curve securities due Feb. 28, 2037 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The interest rate will be fixed at 10% for the first 1.5 years. Beginning Aug. 28, 2018, it will be 15 times the spread of the 30-year ICE swap rate over the two-year ICE swap rate, subject to a minimum of zero and a maximum of 10% per year, multiplied by the proportion of days on which each index closes at or above its respective index reference level, 65% of its initial level. Interest will be payable monthly.

If each index finishes at or above its 50% barrier level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worse-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will settle on Feb. 28.

The Cusip number is 61766YBA8.

© 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.