By Susanna Moon
Chicago, March 7 - Morgan Stanley priced $5 million of fixed-to-floating leveraged CMS curve and Russell 2000 index-linked notes due March 31, 2034, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon is 8% for the first three years. After that, it will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the index closes at or above the 65% barrier level, up to a maximum rate of 10%. 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
|
| Issue: | Fixed-to-floating leveraged CMS curve and Russell 2000-linked notes
|
| Underlying index: | Russell 2000
|
| CMS spread: | 30-year CMS rate over two-year CMS rate
|
| Amount: | $5 million
|
| Maturity: | March 31, 2034
|
| Coupon: | 8% initially; beginning March 31, 2017, four times CMS spread for each day that index closes at or above barrier level, capped at 10%; payable monthly
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Barrier level: | 65% of initial index level
|
| Pricing date: | March 5
|
| Settlement date: | March 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 4%
|
| Cusip: | 61760QEC4
|
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