Morgan Stanley plans to price 10-year Sifma CMS rate floaters due 2019

By Marisa Wong

Madison, Wis., Nov. 8 - Morgan Stanley plans to price 10-year Sifma CMS rate senior floating-rate notes due November 2019, according to an FWP filing with the Securities and Exchange Commission.

Interest is payable quarterly and will equal 5% for the first six months. After that, interest will accrue at the 10-year Sifma CMS rate plus 60 basis points, subject to a floor of zero.

The 10-year Sifma CMS rate is equal to the 10-year Constant Maturity Swap rate times the 10-year Sifma/Libor swap rate.

On any day, the Sifma/Libor quotient is (a) the non-compounded daily weighted average of all the values of the Sifma index within the quarterly interest period ending on that day divided by (b) Libor.

The payout at maturity will be par.

The notes (Cusip: 61745E4R9) will price and settle in November.

Morgan Stanley & Co. Inc. is the agent.

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