Published on 12/3/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5 million fixed-to-floating CMS curve, S&P 500-linked notes
By Marisa Wong
Madison, Wis., Dec. 3 - Morgan Stanley priced $5 million of fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due Dec. 3, 2028, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 9% for the first year. Beginning Dec. 3, 2014, it will be (a) 4 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 75% of the initial index level. The interest rate will be subject to a floor of zero and a cap of 9% per year. Interest is payable quarterly.
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: | $5 million
|
Maturity: | Dec. 3, 2028
|
Coupon: | 9% for first year; beginning Dec. 3, 2014, 4 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 75% of initial index level; subject to minimum rate of zero and maximum of 9% per year; payable quarterly
|
Price: | Par
|
Payout at maturity: | Par
|
Initial index level: | 1,807.23
|
Index reference level: | 1,355.4225, 75% of initial level
|
Pricing date: | Nov. 27
|
Settlement date: | Dec. 3
|
Agent: | Morgan Stanley & Co. LLC
|
Fees: | 3.5%
|
Cusip: | 61760QDT8
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.