Morgan Stanley to price leveraged CMS curve, S&P 500-linked notes

By Marisa Wong

Madison, Wis., Jan. 10 - Morgan Stanley plans to price fixed-to-floating leveraged CMS curve and S&P 500 index-linked notes due Jan. 31, 2034, according to an FWP with the Securities and Exchange Commission.

The coupon will be 10% for the first year. Beginning on Jan. 31, 2015, it will be (a) 4.5 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 75% 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 monthly.

The payout at maturity will be par.

Morgan Stanley & Co. LLC is the agent.

The notes will settle on Jan. 31.

The Cusip number is 61760QDX9.

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