By Jennifer Chiou
New York, Jan. 30 - Morgan Stanley priced an additional $10 million of leveraged CMS curve and S&P 500 index-linked notes due Jan. 31, 2034, bringing the total amount to $13 million. according to a 424B2 filing with the Securities and Exchange Commission.
The coupon is 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 Constant Maturity Swap rate multiplied by (b) the proportion of days on which the index's closing level is at least 75% of the initial index level.
Interest is payable monthly. The interest rate is subject to a floor of zero and a cap of 10% per year.
The payout at maturity will be par.
Morgan Stanley & Co. LLC is the agent.
The initial index level is 1,792.50, the index's closing level on Jan. 28.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged CMS curve and S&P 500-linked notes
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| Underlyings: | 30-year CMS rate, two-year CMS rate, S&P 500 index
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| Amount: | $13 million (up from original $3 million)
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| Maturity: | Jan. 31, 2034
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| Coupon: | 10% for first year; beginning Jan. 31, 2015, 4.5 times spread of 30-year CMS rate over two-year CMS rate multiplied by proportion of days on which S&P 500 closes at or above index reference level, subject to minimum rate of zero and maximum rate of 10% per year; payable monthly
|
| Price: | Variable
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| Payout at maturity: | Par
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| Initial index level: | 1,792.50 (index's closing level on Jan. 28)
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| Index reference level: | 75% of initial index level
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| Pricing date: | Jan. 10 for $3 million; Jan. 28 for $10 million
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| Settlement date: | Jan. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4%
|
| Cusip: | 61760QDX9
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