By Angela McDaniels
Tacoma, Wash., Oct. 7 - Morgan Stanley priced $1 million of fixed-to-floating-rate leveraged CMS curve and Russell 2000 index-linked notes due Oct. 31, 2033, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon is 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 at least 65% of the initial index level.
Interest is payable monthly. The interest rate is subject to a floor of zero and a cap of 10% per year.
The payout at maturity will be par.
Morgan Stanley & Co. LLC is the agent.
The initial index level will be the index's closing level on Oct. 28.
The issuer said it may increase the issue size prior to the Oct. 31 settlement date but is not required to do so.
| Issuer: | Morgan Stanley
|
| Issue: | Fixed-to-floating-rate leveraged CMS curve and Russell 2000-linked notes
|
| Underlyings: | 30-year CMS rate, two-year CMS rate, Russell 2000 index
|
| Amount: | $1 million
|
| Maturity: | Oct. 31, 2033
|
| Coupon: | 10% for first year; beginning Oct. 31, 2014, four times spread of 30-year CMS rate over two-year CMS rate multiplied by proportion of days on which Russell 2000 closes at or above index reference level, subject to minimum rate of zero and maximum rate of 10% per year; payable monthly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Initial index level: | Index's closing level on Oct. 28
|
| Index reference level: | 65% of initial index level
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| Pricing date: | Oct. 3
|
| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61760QDN1
|
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