By Marisa Wong
Madison, Wis., July 30 - Morgan Stanley priced an additional $15 million of CMS curve and S&P 500 index-linked range accrual notes due July 30, 2025, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $50 million, up from $35 million.
The coupon will be 10% for the first year. After that, interest will accrue at 10% per year for each day that the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate is at least zero and the level of the S&P 500 is at least 850.
Interest is payable quarterly.
The payout at maturity will be par.
The notes are callable at par on any quarterly redemption date beginning July 30, 2011.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | CMS curve and S&P 500 index-linked range accrual notes
|
| Amount: | $50 million, up from $35 million
|
| Maturity: | July 30, 2025
|
| Coupon: | 10% per year for first year; thereafter, 10% per year times proportion of days on which 30-year CMS rate is at or above two-year CMS rate and S&P 500 is at least 850; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any quarterly redemption date after one year
|
| Pricing date: | July 27 for $35 million, July 29 for $15 million
|
| Settlement date: | July 30
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.5%
|
| Cusip: | 61745EY88
|
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