By Marisa Wong
Madison, Wis., May 7 - Morgan Stanley priced $1 million of leveraged CMS curve and S&P 500 index-linked notes due May 31, 2027, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon is 10% for the first year. Beginning May 31, 2013, it will be five times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 10% per year, multiplied by the proportion of days on which the index closes at or above 750. Interest is payable quarterly.
The payout at maturity will be par.
The issuer said it may increase the issue size prior to the settlement date but is not required to do so.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged CMS curve and S&P 500 index-linked notes
|
| Amount: | $1 million
|
| Maturity: | May 31, 2027
|
| Coupon: | 10% for first year; beginning May 31, 2013, five times spread of 30-year CMS rate over two-year CMS rate, subject to minimum of zero and maximum of 10%, multiplied by proportion of days on which index closes at or above 750; payable quarterly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Pricing date: | May 3
|
| Settlement date: | May 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61760QBJ2
|
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