By Angela McDaniels
Tacoma, Wash., Feb. 28 - Morgan Stanley priced $5 million of additional fixed-to-floating-rate leveraged CMS curve and S&P 500 index-linked notes due Feb. 28, 2034, according to a 424B2 filing with the Securities and Exchange Commission.
Previously, the issuer priced $5 million of notes Feb. 6 and $5 million Feb. 24. The issue size is now $15 million.
The interest rate is fixed at 10% for the first year. After that, it will be (a) four 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 at least 65% of the initial index level, subject to a maximum rate of 10% per year. Interest is payable monthly and cannot be less than zero.
The payout at maturity will be par.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley
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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: | $15 million, increased from $5 million
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Maturity: | Feb. 28, 2034
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Coupon: | 10% for first year; beginning Feb. 28, 2015, (a) four times spread of 30-year CMS rate over two-year CMS rate multiplied by (b) 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
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Price: | Variable prices
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Payout at maturity: | Par
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Initial index level: | Index's closing level on Feb. 25
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Index reference level: | 65% of initial index level
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Pricing dates: | Feb. 6 for $5 million; Feb. 24 for $5 million; Feb. 27 for $5 million
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Settlement date: | Feb. 28
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 4%
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Cusip: | 61760QDY7
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