By Susanna Moon
Chicago, July 16 - Morgan Stanley priced an additional $16 million of leveraged callable CMS curve-linked notes due July 16, 2030, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $17 million, up from $1 million originally.
The coupon will accrue at 12% for the first year. After that, the rate will be 4.5 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, up to a maximum rate of 15%. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes will be callable at par on any interest payment date beginning July 16, 2011.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged callable CMS curve-linked notes
|
| Amount: | $17 million, upsized from $1 million
|
| Maturity: | July 16, 2030
|
| Coupon: | 12% for one year; then 4.5 times spread of 30-year CMS rate over two-year CMS rate, capped at 15% with a floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after one year
|
| Pricing dates: | June 29 for $1 million; July 15 for $16 million
|
| Settlement date: | July 16
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.5%
|
| Cusip: | 61745EX48
|
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