Morgan Stanley to price callable fixed-to-floaters on ICE swap rates

By Sarah Lizee

Olympia, Wash., Aug. 24 – Morgan Stanley Finance LLC plans to price callable fixed- to floating-rate notes due Sept. 6, 2025 linked to the 30-year U.S. dollar ICE swap rate and the two-year U.S. dollar ICE swap rate, according to an FWP filing with the Securities and Exchange Commission.

The interest rate is 5% for the first two years. After that, the interest rate will be equal to 15 times the spread of the 30-year swap rate over the two-year swap rate, subject to a maximum interest rate of 10% and a minimum interest rate of 0%. Interest will be payable quarterly.

The payout at maturity will be par.

The notes are callable in whole at par quarterly beginning Sept. 6, 2020.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management acting as dealer.

The notes (Cusip: 61766YDG3) will price on Aug. 31 and settle on Sept. 6.

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