Morgan Stanley plans leveraged CMS curve, S&P 500 index-linked notes

By Marisa Wong

Madison, Wis., June 13 - Morgan Stanley plans to price leveraged CMS curve and S&P 500 index-linked notes due June 30, 2026, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 11% for the first year. After that, the rate will accrue at four 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 935, up to a maximum rate of 12% per year in any interest payment period. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes (Cusip: 61745EY47) will settle on June 30.

Morgan Stanley & Co. Inc. is the agent.

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