Published on 6/6/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million fixed-to-float leveraged CMS curve, S&P 500-linked notes
By Toni Weeks
San Luis Obispo, Calif., June 6 - Morgan Stanley priced $1 million of fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due June 28, 2028, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 9% for the first two years. Beginning June 28, 2015, it will be (a) four times the spread of the 30-year Constant Maturity Swap rate over the five-year CMS rate multiplied by (b) the proportion of days on which the index's closing level is greater than or equal to 1,150. The interest rate will be subject to a floor of zero and a cap of 9% per year. Interest will be payable quarterly.
The payout at maturity will be par.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
Issuer: | Morgan Stanley
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Issue: | Fixed-to-floating-rate leveraged CMS curve and S&P 500-linked notes
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Amount: | $1 million
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Maturity: | June 28, 2028
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Coupon: | 9% for first two years; beginning June 28, 2015, four times spread of 30-year CMS rate over five-year CMS rate, multiplied by proportion of days on which S&P 500 is at least 1,150; subject to minimum rate of zero and maximum of 9% per year; payable quarterly
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Price: | Variable prices
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Payout at maturity: | Par
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Pricing date: | June 4
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Settlement date: | June 28
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Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
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Fees: | 3%
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Cusip: | 61760QCQ5
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