By Angela McDaniels
Tacoma, Wash., Feb. 25 - Morgan Stanley priced $5 million of additional fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due Feb. 28, 2034, according to a 424B2 filing with the Securities and Exchange Commission.
The original $5 million of notes priced Feb. 6. The total issue size is now $10 million. The issuer said it may increase the issue size further prior to the Feb. 28 settlement date but is not required to do so.
The interest rate is fixed at 10% for the first year. After that, 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 at least 65% of the initial index level, subject to a maximum rate of 10% per year. Interest is payable monthly and cannot be less than zero.
The payout at maturity will be par.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
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| Issue: | Leveraged CMS curve and S&P 500-linked notes
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| Underlyings: | 30-year CMS rate, two-year CMS rate, S&P 500 index
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| Amount: | $10 million, increased from $5 million
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| Maturity: | Feb. 28, 2034
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| Coupon: | 10% for first year; beginning Feb. 28, 2015, (a) four times spread of 30-year CMS rate over two-year CMS rate multiplied by (b) proportion of days on which S&P 500 closes at or above index reference level, subject to minimum rate of zero and maximum rate of 10% per year; payable monthly
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| Price: | Variable prices
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| Payout at maturity: | Par
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| Initial index level: | Index's closing level on Feb. 25
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| Index reference level: | 65% of initial index level
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| Pricing dates: | Feb. 6 for $5 million; Feb. 24 for $5 million more
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| Settlement date: | Feb. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4%
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| Cusip: | 61760QDY7
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