Morgan Stanley plans fixed-to-floaters linked to Russell, CMS curve

By Toni Weeks

San Luis Obispo, Calif., Nov. 5 - Morgan Stanley plans to price fixed-to-floating leveraged CMS curve-and Russell 2000 index-linked notes due Nov. 27, 2033, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 10% for the first year. After that, for each day that the index closes at or above 70% of the initial level, it will be (a) the applicable leverage factor times (b) the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate. The leverage factor will be four initially, stepping up to five on Nov. 27, 2024 and to seven on Nov. 27, 2029. The interest rate is subject to a floor of zero and a cap of 10% per year and is payable monthly.

The payout at maturity will be par.

The notes (Cusip: 61760QDR2) will price Nov. 22 and settle Nov. 27.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.

© 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.