By Angela McDaniels
Tacoma, Wash., Sept. 22 - Morgan Stanley priced an additional $38 million of leveraged callable CMS curve-linked notes due Sept. 22, 2025, according to a 424B2 filing with the Securities and Exchange Commission.
The additional notes bring the issue size to $100 million. The original $62 million of notes priced Sept. 17.
The coupon is 10% for the first year. After that, the per-year interest rate will be five times the spread of the 10-year Constant Maturity Swap rate over the two-year CMS rate, up to a maximum rate of 15% in each interest period. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
Beginning Sept. 22, 2011, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged callable CMS curve-linked notes
|
| Amount: | $100 million, upsized from $62 million
|
| Maturity: | Sept. 22, 2025
|
| Coupon: | 10% for first year; after that, five times spread of 10-year CMS rate over two-year CMS rate, capped at 15% with floor of 0%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date from Sept. 22, 2011 onward
|
| Pricing dates: | Sept. 17 for $62 million; Sept. 21 for $38 million
|
| Settlement date: | Sept. 22
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.5%
|
| Cusip: | 61745EF71
|
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