By Susanna Moon
Chicago, Aug. 19 - Morgan Stanley priced $3 million of Constant Maturity Swap curve-linked accrual notes due Aug. 29, 2023, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
For the first three years, the notes will bear interest at 8% per year. After that, the rate will be 8% per year for each calendar day that the 30-year CMS rate is less than the two-year CMS rate by 0.1% or more.
Morgan Stanley has the right to call the notes at par on any interest payment date beginning on Aug. 29, 2011.
If the notes are not called early, the payout at maturity will be par.
Morgan Stanley & Co. Inc. is the underwriter.
| Issuer: | Morgan Stanley
|
| Issue: | CMS curve-linked accrual notes
|
| Amount: | $3 million
|
| Maturity: | Aug. 29, 2023
|
| Coupon: | 8% per year until Aug. 29, 2011; thereafter, 8% per year for each day that 30-year CMS rate minus two-year CMS rate is at least negative 0.1%; reset and payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date beginning on Aug. 29, 2011
|
| Pricing date: | Aug. 15
|
| Settlement date: | Aug. 29
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2.5%
|
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