By Toni Weeks
San Diego, July 14 - Morgan Stanley pushed out the maturity date for its $10 million of leveraged CMS curve and S&P 500 index-linked range accrual notes, according to a 424B2 filing with the Securities and Exchange Commission.
The maturity date was changed to July 7, 2026 from June 30, 2026.
The floating-rate period will now begin July 7, 2013. Originally, it started June 30, 2013.
As previously reported, an additional $1.5 million of notes was priced on July 6, upsizing the deal to $10 million. The original $8.5 million of notes priced July 1.
The coupon will be 10.25% for the first two years. 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.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged CMS curve and S&P 500 index-linked range accrual notes
|
| Amount: | $10 million, increased from $8.5 million
|
| Maturity: | July 7, 2026, amended from June 30, 2026
|
| Coupon: | 10.25% for first two years; thereafter, rate will accrue at four times the spread of the 30-year CMS rate over the two-year CMS rate for each day that the S&P 500 is at least 935; cap of 12% and floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing dates: | July 1 for $8.5 million; July 6 for $1.5 million
|
| Settlement date: | July 7
|
| Amendment date: | July 13
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61745EZ87
|
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