New Issue: Morgan Stanley prices $25 million fixed-to-float CMS curve, S&P 500-linked notes

By Toni Weeks

San Luis Obispo, Calif., June 27 - Morgan Stanley priced $25 million of fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due June 28, 2028, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 10.5% for the first two years. Beginning June 28, 2015, it will be (a) five times the spread of the 30-year Constant Maturity Swap rate over the five-year CMS rate multiplied by (b) the proportion of days on which the index's closing level is greater than or equal to 1,100. The interest rate will be subject to a floor of zero and a cap of 10.5% per year. Interest is payable quarterly.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.

Issuer:	Morgan Stanley
Issue:	Fixed-to-floating-rate leveraged CMS curve and S&P 500-linked notes
Amount:	$25 million
Maturity:	June 28, 2028
Coupon:	10.5% for first two years; beginning June 28, 2015, five times spread of 30-year CMS rate over five-year CMS rate, multiplied by proportion of days on which S&P 500 is at least 1,100; subject to minimum rate of zero and maximum of 10.5% per year; payable quarterly
Price:	Par
Payout at maturity:	Par
Pricing date:	June 25
Settlement date:	June 28
Agent:	Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
Fees:	3%
Cusip:	61760QCT9

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