New Issue: Morgan Stanley prices $1 million CMS curve, S&P 500-linked notes

By Jennifer Chiou

New York, Feb. 15 - Morgan Stanley priced $1 million of 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 7% for the first two years. After that, it will accrue at a specified rate multiplied by the proportion of days on which the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate is at or equal to zero and the index closes at or above 990.

The rate will be 7% from Feb. 28, 2014, 8% from Feb. 28, 2017, 9% from Feb. 28, 2022 and 10% from Feb. 28, 2027 up to maturity. Interest is payable monthly 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:	CMS curve and S&P 500 index-linked notes
Amount:	$1 million
Maturity:	Feb. 28, 2032
Coupon:	7% for first two years; after that, it will accrue at a specified rate multiplied by the proportion of days on which the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate is at or equal to zero and the index closes at or above 990; rate will be 7% from Feb. 28, 2014, 8% from Feb. 28, 2017, 9% from Feb. 28, 2022 and 10% from Feb. 28, 2027 up to maturity; payable monthly; floor of zero
Price:	Variable
Payout at maturity:	Par
Pricing date:	Feb. 13
Settlement date:	Feb. 28
Agent:	Morgan Stanley & Co. LLC, with Morgan Stanley Smith Barney LLC as distributor
Fees:	4%
Cusip:	61760QAC8

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