Published on 8/16/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $20 million leveraged CMS curve, Russell 2000-linked notes
By Jennifer Chiou
New York, Aug. 16 - Morgan Stanley priced $20 million of fixed-to-floating leveraged CMS curve and Russell 2000 index-linked notes due Aug. 19, 2028, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 10% for the first year. 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 785.85. 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 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: | $20 million
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Maturity: | Aug. 19, 2028
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Coupon: | 10% for first year; beginning on Aug. 19, 2014, 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 785.85, subject to minimum rate of zero and maximum rate of 10% per year; payable quarterly
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Price: | Par
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Payout at maturity: | Par
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Initial index level: | 1,047.80
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Index reference level: | 785.85
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Pricing date: | Aug. 14
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Settlement date: | Aug. 19
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Agent: | Morgan Stanley & Co. LLC
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Dealer: | Morgan Stanley Smith Barney LLC
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Fees: | 3.5%
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Cusip: | 61760QDA9
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