By Marisa Wong
Madison, Wis., Feb. 14 - Morgan Stanley priced an additional $29 million of leveraged CMS curve and S&P 500 index-linked accrual notes due Feb. 14, 2031 with issuer fixed-rate conversion right, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $30 million. The issuer priced an initial $1 million of the notes on Jan. 25.
The coupon will be 10% for the first four years. After that, the rate will accrue at five times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the S&P 500 is at least 990, up to a maximum coupon of 12%. Interest is payable quarterly and cannot be less than zero.
Beginning Feb. 14, 2015, the issuer may elect to exercise the right to convert the coupon payment to a fixed rate of 10% from the floating rate upon notice of at least 10 business days.
The payout at maturity will be par.
Morgan Stanley & Co. Inc. is the agent.
Issuer: | Morgan Stanley
|
Issue: | Leveraged CMS curve and index-linked accrual notes
|
Underlying index: | S&P 500
|
Amount: | $30 million, increased from $1 million
|
Maturity: | Feb. 14, 2031
|
Coupon: | 10% for first four years; thereafter, five times spread of 30-year CMS rate over two-year CMS rate for each day S&P 500 is at least 990, capped at 12% with floor of 0%; option to convert to fixed rate of 10% beginning Feb. 14, 2015; payable quarterly
|
Price: | Par
|
Payout at maturity: | Par
|
Pricing date: | Jan. 25 for $1 million, Feb. 11 for $29 million
|
Settlement date: | Feb. 14
|
Agent: | Morgan Stanley & Co. Inc.
|
Fees: | 3.5%
|
Cusip: | 61745E3D1
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.