By Angela McDaniels
Tacoma, Wash., July 26 - Morgan Stanley priced $25 million of range accrual step up notes due July 30, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly. The interest rate will be 7% for the first three years. Beginning July 30, 2013, it will be the reference rate multiplied by the proportion of days on which the index closes at or above 850. The reference rate will be 8% per year in years four through six, 10% per year in years seven through nine, 12% per year in years 10 through 12 and 15% per year in years 13 through 15.
The payout at maturity will be par.
Beginning July 30, 2011, the notes are callable at par on Jan. 30, April 30, July 30 and Oct. 30 of each year.
The issuer said it might increase the issue size prior to the settlement date, which will be July 30.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Range accrual step up notes
|
| Underlying index: | S&P 500
|
| Amount: | $25 million
|
| Maturity: | July 30, 2025
|
| Coupon: | 7% for first three years; beginning July 30, 2013, reference rate multiplied by proportion of days on which index closes at or above 850; reference rate is 8% per year in years four through six, 10% in years seven through nine, 12% in years 10 through 12 and 15% in years 13 through 15; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on Jan. 30, April 30, July 30 and Oct. 30 of each year from July 30, 2011 onward
|
| Pricing date: | July 22
|
| Settlement date: | July 30
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3%
|
| Cusip: | 61745E2Q3
|
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