Morgan Stanley to price leveraged 10-year CMS observation notes

By E. Janene Geiss

Philadelphia, Jan. 21 - Morgan Stanley plans to price 100% principal-protected leveraged 10-year CMS observation notes due Feb. 10, 2012, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable annually on Feb. 10, 2010, Feb. 10, 2011 and at maturity. The annual payout will be equal to the 10-year Constant Maturity Swap rate minus a strike level of 3% multiplied by a leverage factor of 7 or 8 times. The exact leverage factor will be set at pricing.

If the 10-year CMS rate is equal or less than the strike on the annual observation date, investors will not receive interest for that year.

The payout at maturity will be par.

The notes will price in February and settle Feb. 10.

Morgan Stanley & Co. Inc. will be the agent.

© 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.