By Toni Weeks
San Diego, Oct. 27 - Morgan Stanley priced an additional $3 million of CMS curve-linked accrual notes due Oct. 27, 2031 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $4 million, up from $1 million.
The coupon will be 7% for the first three years. Beginning Oct. 27, 2014, the interest rate will be 7% multiplied by the proportion of days on which the spread of the 30-year CMS rate over the two-year CMS rate is zero or greater. Interest is payable monthly.
The payout at maturity will be par.
The issuer said it may increase the size of the issue prior to the settlement date but is not required to do so.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | CMS curve-linked accrual notes
|
| Underlying: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $4 million, upsized from $1 million
|
| Maturity: | Oct. 27, 2031
|
| Coupon: | 7% for first three years; beginning Oct. 27, 2014, 7% multiplied by proportion of days on which spread of 30-year CMS rate over two-year CMS rate is zero or greater; payable monthly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Pricing dates: | Sept. 28 for $1 million, Oct. 26 for $3 million
|
| Settlement date: | Oct. 27
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61745EW31
|
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