Morgan Stanley to price fixed-to-floating notes linked to gasoline

By Angela McDaniels

Tacoma, Wash., April 17 - Morgan Stanley plans to price fixed-to-floating-rate notes due April 28, 2023 linked to the price of RBOB gasoline, according to an FWP filing with the Securities and Exchange Commission.

The initial interest rate will be 7%. Beginning April 28, 2014, the interest rate will be an annual rate equal to the sum of (a) the commodity price in U.S. cents divided by 100 and (b) 1%. Interest will be payable quarterly.

The commodity price is the official settlement price per gallon of New York Harbor reformulated gasoline blendstock for oxygen blending on the New York Mercantile Exchange of the first nearby month futures contract.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

The notes will price April 26 and settle April 30.

The Cusip number is 6174824H4.

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