Morgan Stanley to price leveraged callable CMS curve linked notes

By Angela McDaniels

Tacoma, Wash., June 29 - Morgan Stanley plans to price leveraged callable CMS curve linked notes due July 16, 2030 linked to the 30-year and two-year Constant Maturity Swap rates, according to an FWP filing with the Securities and Exchange Commission.

The interest rate is fixed at 12% for the first year. Beginning July 16, 2011, the per-year interest rate will be 4.5 times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a cap of 15% and a floor of zero. Interest is payable quarterly.

The payout at maturity will be par.

Beginning July 16, 2011, the notes are callable at par on any interest payment date.

The notes will settle on July 16.

Morgan Stanley & Co. Inc. is the agent.

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