Published on 2/15/2012 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million CMS curve, S&P 500-linked notes
By Jennifer Chiou
New York, Feb. 15 - Morgan Stanley priced $1 million of CMS curve and S&P 500 index-linked notes due Feb. 28, 2032, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 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 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.
Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Smith Barney LLC will handle distribution.
Issuer: | Morgan Stanley
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Issue: | CMS curve and S&P 500 index-linked notes
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Amount: | $1 million
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Maturity: | Feb. 28, 2032
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Coupon: | 7% for 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; rate will be 7% from Feb. 28, 2014, 8% from Feb. 28, 2017, 9% from Feb. 28, 2022 and 10% from Feb. 28, 2027 up to maturity; payable monthly; floor of zero
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Price: | Variable
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Payout at maturity: | Par
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Pricing date: | Feb. 13
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Settlement date: | Feb. 28
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Agent: | Morgan Stanley & Co. LLC, with Morgan Stanley Smith Barney LLC as distributor
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Fees: | 4%
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Cusip: | 61760QAC8
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