Published on 6/4/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $13 million fixed-to-floaters with 1.5% start rate
By Marisa Wong
Madison, Wis., June 4 – Morgan Stanley priced $13 million of fixed-to-floating notes due May 26, 2020 linked to Libor, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be 1.5% for the first year. After that, the interest rate will be equal to Libor plus 80 basis points, subject to a maximum rate. The maximum rate is 3.5% initially, stepping up to 3.75% on May 26, 2017, to 4.5% on May 26, 2018 and to 5.5% on May 26, 2019. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley
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Issue: | Fixed-to-floating notes
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Underlying: | Libor
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Amount: | $13 million (up from $10 million)
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Maturity: | May 26, 2020
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Coupon: | 1.5% for first year; after that, Libor plus 80 bps, subject to minimum rate of 0% and maximum rate of 3.5% initially, stepping up to 3.75% on May 26, 2017, to 4.5% on May 26, 2018 and to 5.5% on May 26, 2019; payable quarterly
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Price: | Par
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Payout at maturity: | Par
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Pricing date: | June 2 for $10 million, June 3 for $3 million
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Settlement date: | June 4
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.5%
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Cusip: | 61760QGG3
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