Morgan Stanley plans range accrual notes linked to CMS curve, S&P 500

By Marisa Wong

Madison, Wis., Feb. 21 - Morgan Stanley plans to price CMS curve and S&P 500 index-linked range accrual notes due March 15, 2032, according to an FWP filing with the Securities and Exchange Commission.

The interest rate will be 10% for the first three years. After that, the rate will equal five times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day the S&P 500 is at least 650, subject to a maximum rate of 10% per year in any quarterly period. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes (Cusip: 61760QAG9) will price in February and settle March 15.

Morgan Stanley & Co. LLC is the agent.

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