By Wendy Van Sickle
Columbus, Ohio, Dec. 9 – Morgan Stanley Finance LLC priced $3 million of fixed-to-floating-rate notes due Dec. 30, 2036 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The interest rate is fixed at 10% for the first two years. After that, it will accrue at 20 times the 30-year ICE swap rate minus the two-year ICE swap rate for each day both indexes close above 70% of their initial levels, up to a maximum rate of 10% a year.
The payout at maturity will be par unless either index finishes below its 50% barrier level, in which case investors will be fully exposed to the loss of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Fixed-to-floating-rate notes
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| Amount: | $3 million
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| Maturity: | Dec. 30, 2036
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| Coupon: | 10% for first two years; then 20 times 30-year ICE swap rate minus two-year ICE swap rate for each day both indexes close above 70% of initial levels, capped at 10% a year; payable monthly
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| Initial index levels: | Closing levels on Dec. 27
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| Price: | Variable
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| Payout at maturity: | Par
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| Pricing date: | Dec. 2
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| Settlement date: | Dec. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fee: | 5%
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| Cusip: | 61766YAY7
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