New Issue: Morgan Stanley prices $5 million 20-year leveraged CMS curve, S&P 500-linked notes

By Toni Weeks

San Diego, Feb. 6 - Morgan Stanley priced $5 million of leveraged CMS curve and S&P 500 index-linked notes due Feb. 28, 2032, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 10% for the first year. After that, it will accrue at seven times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the index closes at or above 800, up to a maximum rate of 10% in any interest payment period. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Smith Barney LLC will handle distribution.

Issuer:	Morgan Stanley
Issue:	Leveraged CMS curve and S&P 500 index-linked notes
Amount:	$5 million
Maturity:	Feb. 28, 2032
Coupon:	10% for first year; beginning Feb. 28, 2013, seven times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the index closes at or above 800, up to a maximum rate of 10% and floor of 0% in any interest payment period; payable quarterly
Price:	Variable
Payout at maturity:	Par
Pricing date:	Feb. 2
Settlement date:	Feb. 28
Agent:	Morgan Stanley & Co. LLC, with Morgan Stanley Smith Barney LLC as distributor
Fees:	4%
Cusip:	61745E7F2

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