Morgan Stanley plans leveraged CMS curve, Russell 2000-linked notes

By Angela McDaniels

Tacoma, Wash., Oct. 3 - Morgan Stanley plans to price fixed-to-floating-rate leveraged CMS curve and Russell 2000 index-linked notes due Oct. 31, 2033, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 10% for the first year. Beginning Oct. 31, 2014, it will be (a) four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate multiplied by (b) the proportion of days on which the index's closing level is greater than or equal to 65% of the initial index level. The interest rate is subject to a floor of zero and a cap of 10% per year. Interest is payable monthly.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

The notes will settle Oct. 31.

The Cusip number is 61760QDN1.

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