Published on 8/13/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.5 million leveraged CMS curve, Russell 2000-linked notes
By Toni Weeks
San Luis Obispo, Calif., Aug. 13 - Morgan Stanley priced $2.5 million of fixed-to-floating leveraged CMS curve and Russell 2000 index-linked notes due Aug. 28, 2033, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 10% for the first two years. After that, it will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, subject to a minimum of zero and a maximum annualized rate of 10%, multiplied by the proportion of days on which the index closes at or above 680. Interest will be payable monthly.
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 leveraged CMS curve and Russell 2000-linked notes
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Underlyings: | 30-year CMS rate, two-year CMS rate, Russell 2000 index
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Amount: | $2.5 million
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Maturity: | Aug. 28, 2033
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Coupon: | 10% for two years; beginning Aug. 28, 2015, four times spread of 30-year CMS rate over two-year CMS rate multiplied by proportion of days on which index closes at or above 680, subject to minimum rate of zero and maximum rate of 10% per year; payable monthly
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Price: | Variable prices
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Payout at maturity: | Par
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Initial index level: | 1,048
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Index reference level: | 680
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Pricing date: | Aug. 9
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Settlement date: | Aug. 28
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Agent: | Morgan Stanley & Co. LLC
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Dealer: | Morgan Stanley Smith Barney LLC
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Fees: | 3.75%
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Cusip: | 61760QDE1
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