Morgan Stanley plans leveraged CMS curve notes linked to Russell, S&P

By Angela McDaniels

Tacoma, Wash., Nov. 2 – Morgan Stanley Finance LLC plans to price leveraged CMS curve securities due Nov. 29, 2036 linked to the worse performing of the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The interest rate will be 9% for the first three years. Beginning Aug. 31, 2019, it will be 20 times the spread of the 30-year ICE swap rate over the two-year ICE swap rate, subject to a minimum of zero and a maximum of 9% per year, multiplied by the proportion of days on which each index closes at or above its index reference level, 70% of its initial level. Interest will be payable monthly.

If each index finishes at or above its barrier level, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worse-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will settle Nov. 29.

The Cusip number is 61766YAV3.

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