By Jennifer Chiou
New York, April 26 - Morgan Stanley upsized its leveraged CMS curve and S&P 500 index-linked accrual notes due April 26, 2026 with issuer fixed-rate conversion right by $1 million, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total amount to $2 million.
The coupon will be 11% for the first year. After that, the rate will accrue at four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the S&P 500 closes at or above 975, up to a cap of 12% - unless the issuer chooses to exercise its conversion right, in which case the interest rate will revert to a fixed rate of 11%.
Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged CMS curve and S&P 500 index-linked accrual notes with issuer fixed-rate conversion right
|
| Amount: | $2 million, up from original $1 million
|
| Maturity: | April 26, 2026
|
| Coupon: | 11% for first year; beginning April 26, 2012, four times spread of 30-year CMS rate over two-year CMS rate for each day that S&P 500 closes at or above 975, capped at 12% - unless issuer chooses to revert rate back to 11% under conversion right; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | April 6
|
| Upsize date: | April 25
|
| Settlement date: | April 26
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.5%
|
| Cusip: | 61745EH46
|
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