Morgan Stanley to price additional renminbi-denominated step-up notes

By Angela McDaniels

Tacoma, Wash., Aug. 31 - Morgan Stanley plans to price an add-on to its Chinese renminbi-denominated senior fixed-rate step-up securities due Feb. 11, 2016, according to an FWP filing with the Securities and Exchange Commission.

The company has issued RMB 440 million of the notes so far, including RMB 350 million on Feb. 11, RMB 50 million on March 17 and RBM 40 million on April 28.

The issue price for the expected add-on will be par plus accrued interest from Feb. 11.

The securities are denominated in renminbi, but all interest payments and the payout at maturity will be made in dollars. The payments will be converted at the exchange rate then in effect.

The coupon is 0.5% for the first year. The rate will step up by 25 basis points each year. Interest is payable annually.

The payout at maturity will be par.

An application will be made to list the notes on the London Stock Exchange.

The notes (common code: 058615234) will settle on Sept. 7.

Morgan Stanley & Co. International plc is the underwriter.

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