By Marisa Wong
Madison, Wis., Aug. 7 - Morgan Stanley priced $3 million of fixed-to-floating-rate leveraged CMS curve and Russell 2000 index-linked notes due Aug. 19, 2033, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer said it may increase the issue amount prior to the settlement date but is not required to do so.
The coupon will be 10% for the first two years. Beginning Aug. 19, 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 65% of the initial level. The interest rate will be subject to a floor of zero and a cap of 10% per year. Interest will be 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 Russell 2000 index-linked notes
|
| Amount: | $3 million
|
| Maturity: | Aug. 19, 2033
|
| Coupon: | 10% for first two years; beginning Aug. 19, 2015, (a) four times spread of 30-year CMS rate over two-year CMS rate multiplied by (b) proportion of days on which index's closing level is greater than or equal to 65% of initial level, subject to floor of 0% and cap of 10% per year; payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Initial level: | Closing level of index on Aug. 16
|
| Pricing date: | Aug. 5
|
| Settlement date: | Aug. 19
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61760QDD3
|
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