By Marisa Wong
Madison, Wis., April 10 – Morgan Stanley priced $1 million of CMS curve range accrual securities due April 30, 2035 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be fixed at 9% for the first year. After that, it will accrue at 9% for each day that the 30-year Constant Maturity Swap rate is greater than the two-year CMS rate and the index closes at or above the 60% barrier level. Interest is payable monthly.
The payout at maturity will be par plus accrued interest unless either index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley
|
Issue: | CMS curve range accrual securities
|
Underlying indexes: | S&P 500 and Russell 2000
|
Amount: | $1 million
|
Maturity: | April 30, 2035
|
Coupon: | Fixed at 9% for first year; after that, 9% per year for each day that 30-year CMS rate is greater than two-year CMS rate and index closes at or above 60% barrier level; payable monthly
|
Price: | Variable
|
Payout at maturity: | Par plus accrued interest unless either index finishes below 50% trigger level, in which case investors will be fully exposed to any losses of worst performing index
|
Pricing date: | April 7
|
Settlement date: | April 30
|
Agent: | Morgan Stanley & Co. LLC
|
Fees: | 3.5%
|
Cusip: | 61760QFY5
|
|
© 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.