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Published on 2/11/2011 in the Prospect News Structured Products Daily.

New Issue: Morgan Stanley upsizes nine-year fixed-to-floaters linked to 10-year CMS to $10 million

By Toni Weeks

San Diego, Feb. 11 - Morgan Stanley priced an additional $2.77 million of fixed-to-floating-rate notes due Feb. 11, 2020 tied to the 10-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.

This brings the total issue size to $10 million. The original $7.23 million priced Feb. 8.

Interest is payable quarterly and will equal 4.5% for the first two years. After that, interest will equal the 10-year CMS rate, subject to a cap of 8% per year.

The payout at maturity will be par plus accrued interest.

Morgan Stanley & Co. Inc. is the agent.

Issuer:Morgan Stanley
Issue:Fixed-to-floating-rate notes
Amount:$10 million, increased from $7.23 million
Maturity:Feb. 11, 2020
Coupon:4.5% for first two years; thereafter, the coupon will be equal to the 10-year CMS rate, capped at 8%; payable quarterly
Price:Par
Payout at maturity:Par
Pricing date:Feb. 8 for $7.23 million; Feb.10 for $2.77 million
Settlement date:Feb. 11
Agent:Morgan Stanley & Co. Inc.
Fees:2.25%
Cusip:61745E2X8

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