New Issue: Morgan Stanley prices $12 million leveraged CMS curve, S&P 500-linked notes

By Susanna Moon

Chicago, May 30 - Morgan Stanley priced $12 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 three years. After that, it will be six times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, up to a maximum rate of 10% per year, for each day that the index closes at or above 700. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Leveraged CMS curve and S&P 500 index-linked notes
Amount:	$12 million
Maturity:	May 31, 2027
Coupon:	10% initially; beginning May 31, 2015, six times spread of 30-year CMS rate over two-year CMS rate, capped at 10% and floor of zero, for each day that index closes at or above 700; payable quarterly
Price:	Par
Payout at maturity:	Par
Pricing date:	May 25
Settlement date:	May 31
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61760QBH6

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