Morgan Stanley plans leveraged notes linked to CMS curve, Russell 2000

By Angela McDaniels

Tacoma, Wash., Aug. 9 - Morgan Stanley plans to price leveraged CMS curve and Russell 2000 index-linked notes due Aug. 28, 2033, according to an FWP filing with the Securities and Exchange Commission.

The interest rate will be 10% for the first two years. Beginning Aug. 28, 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 680. The interest rate will be subject to a floor of zero and a cap of 10% per year. Interest will be payable monthly.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

The notes will settle Aug. 28.

The Cusip number is 61760QDE1.

© 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.