Morgan Stanley plans to sell CMS curve, S&P 500 range accrual notes

By E. Janene Geiss

Philadelphia, Dec. 22 - Morgan Stanley plans to price 100% principal-protected CMS curve and S&P 500 index-linked range accrual notes due January 2025, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly and equals 8% to 8.1% per year for the first three years. Beginning January 2013, interest will accrue at 8% to 8.1% per year for each day that the spread between the 30-year Constant Maturity Swap rate and the two-year CMS rate is at least zero and the level of the S&P 500 index is at least 850.

The exact interest rate will be set at pricing.

The payout at maturity will be par. The issue price is par.

The notes are callable at par on any interest payment date beginning January 2013.

The notes are expected to settle in January.

Morgan Stanley & Co. is the agent.

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