By Angela McDaniels
Tacoma, Wash., Oct. 14 – Morgan Stanley priced $1 million of floating-rate CMS curve and S&P 500 index-linked notes due Oct. 31, 2034, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 7.25% per year multiplied by the proportion of days on which the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate is greater than or equal to zero and the index closes at or above the index reference level, 60% of the initial level. Interest is payable monthly.
If the index finishes at or above the 50% barrier level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the index’s decline.
The issuer said it may increase the issue size prior to the settlement date but is not required to do so.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | CMS curve and S&P 500 index-linked notes
|
| Underlyings: | 30-year CMS rate, two-year CMS rate, S&P 500 index
|
| Amount: | $1 million
|
| Maturity: | Oct. 31, 2034
|
| Coupon: | 7.25% per year multiplied by proportion of days on which spread of 30-year CMS rate over two-year CMS rate is greater than or equal to zero and index closes at or above index reference level; payable monthly
|
| Price: | Variable prices
|
| Payout at maturity: | If index finishes at or above barrier level, par; otherwise, full exposure to losses
|
| Initial index level: | Index’s closing level on Oct. 28
|
| Barrier level: | 50% of initial index level
|
| Index reference level: | 60% of initial index level
|
| Pricing date: | Oct. 9
|
| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61760QFC3
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
