By Susanna Moon
Chicago, July 29 - Morgan Stanley priced $14 million of leveraged CMS notes due Aug. 12, 2031, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 10% for the first year. After that, it will accrue at 2.7 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, up to a maximum rate of 10%. 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
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Issue: | Leveraged CMS notes
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Underlying rates: | 30-year CMS rate and two-year CMS rate
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Amount: | $14 million
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Maturity: | Aug. 12, 2031
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Coupon: | 10% for one year; after that, 2.7 times spread of the 30-year CMS rate over the two-year CMS rate; cap of 10% and floor of zero; payable quarterly
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Price: | Variable
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Payout at maturity: | Par
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Pricing date: | July 27
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Settlement date: | Aug. 12
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.5%
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Cusip: | 61745E4S7
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