By Angela McDaniels
Tacoma, Wash., Sept. 24 - Morgan Stanley priced $12 million of additional fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due Sept. 26, 2033, according to a 424B2 filing with the Securities and Exchange Commission.
The additional notes bring the issue size to $13 million. The original $1 million of notes priced Sept. 10.
The coupon will be 10% for the first two years. Beginning Sept. 26, 2015, it will be (a) four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate multiplied by (b) the proportion of days on which the index's closing level is greater than or equal to 70% of the initial index level. The interest rate is subject to a floor of zero and a cap of 10% per year. Interest is payable monthly.
The payout at maturity will be par.
The issuer said it may further increase the issue size prior to the Sept. 26 settlement date but is not required to do so.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Fixed-to-floating-rate leveraged CMS curve and S&P 500-linked notes
|
| Amount: | $13 million, increased from $1 million
|
| Maturity: | Sept. 26, 2033
|
| Coupon: | 10% for first two years; beginning Sept. 26, 2015, four times spread of 30-year CMS rate over two-year CMS rate, multiplied by proportion of days on which S&P 500 is at least 70% of initial index level, subject to minimum rate of zero and maximum of 10% per year; payable monthly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Initial index level: Closing level of index on Sept. 23
|
| Pricing date: | Sept. 10
|
| Upsized: | Sept. 20
|
| Settlement date: | Sept. 26
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61760QDL5
|
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