New Issue: Morgan Stanley increases leveraged CMS curve, Russell 2000-linked notes to $15 million

By Angela McDaniels

Tacoma, Wash., Aug. 19 - Morgan Stanley priced an additional $12 million of 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 total issue size is now $15 million.

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's closing level is at least 65% of the initial index level. Interest is payable quarterly.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Leveraged CMS curve and Russell 2000-linked notes
Underlyings:	30-year CMS rate, two-year CMS rate, Russell 2000 index
Amount:	$15 million, increased from $3 million
Maturity:	Aug. 19, 2033
Coupon:	10% for first two years; after that, will be four times spread of 30-year CMS rate over two-year CMS rate, subject to minimum of zero and maximum annualized rate of 10%, multiplied by proportion of days on which index closes at or above index reference level; payable quarterly
Price:	Variable prices
Payout at maturity:	Par
Initial index level:	1,024.30
Index reference level:	665.795, 65% of initial level
Pricing date:	Aug. 5
Upsized:	Aug. 16
Settlement date:	Aug. 19
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61760QDD3

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