Morgan Stanley plans 20-year CMS curve and S&P 500-linked notes

By Jennifer Chiou

New York, Feb. 10 - Morgan Stanley plans to price CMS curve and S&P 500 index-linked notes due Feb. 28, 2032, according to an FWP with the Securities and Exchange Commission.

The coupon is 7% for the first two years. After that, it will accrue at a specified rate multiplied by the proportion of days on which the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate is at or equal to zero and the index closes at or above 990.

The rate will be 7% from Feb. 28, 2014, 8% from Feb. 28, 2017, 9% from Feb. 28, 2022 and finally 10% from Feb. 28, 2027 up to maturity. Interest is payable monthly and cannot be less than zero.

The payout at maturity will be par.

The notes (Cusip: 61760QAC8) will settle on Feb. 28.

Morgan Stanley & Co. LLC is the agent.

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