By Toni Weeks
San Diego, April 12 - Morgan Stanley priced $2.5 million of range accrual notes due April 29, 2026 linked to the 30-year and two-year Constant Maturity Swap rates, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 8% for the first two years. After that, interest will accrue at 8% per year on each day that the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate is at least zero, the closing level of the S&P 500 index is at least 775 and the closing level of the Russell 2000 index is at least 550.
Interest is payable monthly.
The payout at maturity will be par.
Morgan Stanley & Co. is in the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Range accrual notes
|
| Underlying components: | 30-year Constant Maturity Swap rate and two-year CMS rate, S&P 500 index, Russell 2000 index
|
| Amount: | $2.5 million
|
| Maturity: | April 29, 2026
|
| Coupon: | 8% for first two years; after that, 8% per year on each day that spread of 30-year CMS rate over two-year CMS rate is at least zero, level of S&P 500 is at least 775 and level of Russell 200 is at least 550; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Index reference levels: | 775 for the S&P 500, 550 for the Russell 2000
|
| Pricing date: | April 8
|
| Settlement date: | April 29
|
| Agent: | Morgan Stanley & Co.
|
| Fees: | 4%
|
| Cusip: | 61745EJ28
|
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