Morgan Stanley to price leveraged callable CMS curve linked notes

By Jennifer Chiou

New York, July 23 - Morgan Stanley plans to price leveraged callable CMS curve linked notes due Aug. 12, 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 11% for the first year. Beginning Aug. 12, 2011, the per-year interest rate will be 4 times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a cap of 20% and a floor of zero. Interest is payable monthly.

The payout at maturity will be par.

Beginning Aug. 12, 2011, the notes are callable at par on any interest payment date.

The notes (Cusip 61745E2W0) will price in July and settle on Aug. 12.

Morgan Stanley & Co. Inc. is the agent.

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