By Toni Weeks
San Luis Obispo, Calif., Oct. 29 - Morgan Stanley priced another $9 million of fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due Oct. 31, 2028, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $10 million. The initial $1 million of the notes priced Oct. 21.
The coupon will be 10% for the first two years. Beginning Oct. 31, 2015, 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 50% of the initial index level. The interest rate will be 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.
| Issuer: | Morgan Stanley
|
| Issue: | Fixed-to-floating-rate leveraged CMS curve and S&P 500-linked notes
|
| Amount: | $10 million, upsized from $1 million
|
| Maturity: | Oct. 31, 2028
|
| Coupon: | 10% for first two years; beginning Oct. 31, 2015, four times spread of 30-year CMS rate over two-year CMS rate, multiplied by proportion of days on which S&P 500 is at least 50% of initial index level; subject to minimum rate of zero and maximum of 10% per year; payable monthly
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Initial level: | 1,762.11 (index closing level on Oct. 28)
|
| Index reference level: | 881.055, 50% of initial level
|
| Pricing date: | Oct. 21
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| Upsized: | Oct. 28
|
| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61760QDQ4
|
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