By Toni Weeks
San Diego, Aug. 11 - Morgan Stanley priced an additional $11 million of leveraged CMS notes due Aug. 12, 2031, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $25 million. The first $14 million of notes priced on July 27.
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
|
| Issue: | Leveraged CMS notes
|
| Underlying rates: | 30-year CMS rate and two-year CMS rate
|
| Amount: | $25 million, upsized from $14 million
|
| Maturity: | Aug. 12, 2031
|
| 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
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Pricing dates: | July 27 for $14 million, Aug. 10 for $11 million
|
| Settlement date: | Aug. 12
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 4%
|
| Cusip: | 61745E4S7
|
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