Morgan Stanley plans leveraged CMS curve securities on three indexes

By Sarah Lizee

Olympia, Wash., April 9 – Morgan Stanley Finance LLC plans to price leveraged CMS curve securities due April 30, 2033 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Interest will be fixed at 10% for the first two years. After that, it will be 15 times the spread of the 30-year ICE swap rate over the two-year ICE swap rate for each day that each index closes at or above its 60% reference level, up to a cap of 10% per year. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par unless any index finishes below its 50% barrier level, in which case investors will be fully exposed to the decline of the worst performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will settle on April 30.

The Cusip number is 61766YCQ2.

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