Morgan Stanley changes fees of leveraged CMS curve, S&P-linked notes

By Angela McDaniels

Tacoma, Wash., April 4 - Morgan Stanley increased the fees of its $1 million of leveraged CMS curve and S&P 500 index-linked notes due April 30, 2032 to 4% from 3%, according to an amended 424B2 filing with the Securities and Exchange Commission.

The notes priced March 30 and will settle April 30. The issuer said it may increase the issue size prior to the settlement date but is not required to do so.

As previously reported, the coupon is 10% for the first four years. Beginning April 30, 2016, it will be five times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 10% per year, multiplied by the proportion of days on which the index closes at or above 750. Interest is payable quarterly.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

The Cusip number is 61760QAW4.

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