By Angela McDaniels
Tacoma, Wash., July 28 - Morgan Stanley priced $17.1 million of callable Sifma Municipal Swap index and Libor accrual notes due July 29, 2025, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly. The interest rate will be fixed at 10% for the first two years. Beginning July 29, 2012, the interest rate will be 10% per year multiplied by the proportion of days on which the average Sifma/Libor quotient is no more than 70% and Libor is no more than 2%.
On any day, the average Sifma/Libor quotient is a) the non-compounded daily weighted average of all the values of the Sifma index for the 90-calendar-day period ending on that day divided by b) Libor.
The payout at maturity will be par.
Beginning July 29, 2012, the notes will be callable at par on any interest payment date.
The issuer said it may increase the issue size prior to the settlement date, which is July 29.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Callable Sifma Municipal Swap index and Libor accrual notes
|
| Amount: | $17,102,000
|
| Maturity: | July 29, 2025
|
| Coupon: | Initially 10%; beginning July 29, 2012, 10% per year times proportion of days on which average Sifma/Libor quotient is no more than 70% and Libor is no more than 2%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date from July 29, 2012 onward
|
| Pricing date: | July 26
|
| Settlement date: | July 29
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.25%
|
| Cusip: | 61750VAG0
|
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