By Jennifer Chiou
New York, Nov. 26 - Morgan Stanley priced another $10 million of fixed-to-floating-rate leveraged CMS curve and Russell 2000 index-linked notes due Nov. 27, 2033, bringing the total issue to $15 million, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 10% for the first year. Beginning on Nov. 27, 2014, it will be (a) the leverage factor 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 70% 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 leverage factor will be four until Nov. 27, 2024, rising to five until Nov. 27, 2029 and to seven until maturity.
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 Russell 2000-linked notes
|
| Amount: | $15 million (up from original $1 million)
|
| Maturity: | Nov. 27, 2033
|
| Coupon: | 10% for first year; beginning Nov. 27, 2014, leverage factor times spread of 30-year CMS rate over two-year CMS rate, multiplied by proportion of days on which Russell 2000 is at least 70% of initial index level; subject to minimum rate of zero and maximum of 10% per year; payable monthly
|
| Leverage factor: Four until Nov. 27, 2024, rising to five until Nov. 27, 2029 and to seven until maturity
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Initial level: | Index closing level on Nov. 22
|
| Pricing date: | Nov. 5 (for $1 million); Nov. 20 (for $4 million); Nov. 22 (for $10 million)
|
| Settlement date: | Nov. 27
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61760QDR2
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