By Toni Weeks
San Luis Obispo, Calif., Jan. 30 – Morgan Stanley priced another $4 million of fixed-to-floating leveraged CMS curve and Russell 2000 index-linked notes due Jan. 30, 2035, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $7 million. The initial $3 million of the notes priced on Jan. 5.
The coupon will be fixed at 10% for the first year. After that, it will accrue at 8 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the index closes at or above the 70% barrier level, up to a maximum coupon of 10% per year. Interest is payable monthly and cannot be less than zero.
If the index finishes at or above the trigger level, 50% of the initial index level, the payout at maturity will be par.
Otherwise, investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Leveraged CMS curve and Russell 2000 index-linked notes
|
| Underlyings: | 30-year CMS rate, two-year CMS rate, Russell 2000 index
|
| Amount: | $7 million, upsized from $3 million
|
| Maturity: | Jan. 30, 2035
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| Coupon: | 10% initially; beginning Jan. 30, 2016, 8 times spread of 30-year CMS rate over two-year CMS rate for each day that index closes at or above index reference level, up to a cap of 10%, floor of zero; payable monthly
|
| Price: | Variable
|
| Payout at maturity: | If index finishes at or above trigger level, par; otherwise, full exposure to losses
|
| Coupon barrier: | 70% of initial index level
|
| Trigger level: | 50% of initial index level
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| Pricing dates: | Jan. 5 (for $3 million); Jan. 29 (for $4 million)
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| Settlement date: | Jan. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 3.75%
|
| Cusip: | 61760QFP4
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