By Susanna Moon
Chicago, Aug. 24 - Morgan Stanley priced $60 million of leveraged CMS curve and S&P 500 index-linked callable notes due Aug. 25, 2025, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 10% for the first two years. After that, the rate will be five times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the spread is at least zero and the S&P 500 is at least 875, up to a maximum rate of 18% per year.
Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes are callable at par on any interest payment date beginning Aug. 25, 2012.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged CMS curve and S&P 500 index-linked callable notes
|
| Amount: | $60 million
|
| Maturity: | Aug. 25, 2025
|
| Coupon: | 10% per year for two years; after that, five times spread of 30-year CMS rate over two-year CMS rate for each day that spread is at least zero and S&P 500 is at least 875, capped at 18%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date after two years
|
| Pricing date: | Aug. 20
|
| Settlement date: | Aug. 25
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.5%
|
| Cusip: | 61745E4W8
|
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