By Susanna Moon
Chicago, July 27 - Morgan Stanley priced $2 million of leveraged callable CMS curve-linked notes due Aug. 12, 2030, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will accrue at 11% for the first year. After that, the rate will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, up to a maximum rate of 20%. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes will be callable at par on any interest payment date beginning Aug. 12, 2011.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged callable CMS curve-linked notes
|
| Amount: | $2 million
|
| Maturity: | Aug. 12, 2030
|
| Coupon: | 11% for one year; then four times spread of 30-year CMS rate over two-year CMS rate, capped at 20% with floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after one year
|
| Pricing date: | July 23
|
| Settlement date: | Aug. 12
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 4%
|
| Cusip: | 61745E2W0
|
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